SMALL INDUSTRIAL SALES DRIVING MARKET: REPORT
New research by Ray White shows the Gold Coast has bounced back after the Federal Election, with industrial properties under $1m leading the resurgence
INDUSTRIAL properties selling for under $1 million made up more than one in two transactions for the second quarter of the year, according to new Ray White research.
The Between The Lines report for the first six months of the year, authored by head of research Vanessa Rader, recorded 75 sales in the Gold Coast industrial sector out of a total of 133 between April and June.
More than two thirds of the industrial properties sold for an average of $487,550.
Industrial made up 34.1 per cent of the sales volume of $328.11 million for the quarter, by far the largest chunk, and also led development for the first six months of the year with 26.32 per cent of the total volume of $521.6 million. The industrial figure was boosted by the sale of the Billabong headquarters for $38.46 million, which, the report says, was included in the industrial category because it is mainly used as a manufacturing/ distribution facility.
The vast majority of sales, or all but 27 transactions, came in the second quarter.
Ms Rader said the market sharply turned post May’s election. “Gold Coast was one of the best markets for sentiment turning positive post the election,” she said.
“These smaller industrial properties are popular with investors because the yields are still attractive compared to other investments and they are at an affordable price point.”
She said she expected solid sales from the industrial market during the second half of the year provided stock continues to come to the market at previous levels.
The Ray White report says sales of development sites have bounced back this year after a lacklustre 2018. They made up more than a quarter of total sales.
The total sales volume, while being down 23 per cent compared to the first half of 2018, was still well above the $276 million recorded for the same period in 2017.