Southern GC surging on back of growth

THE Southern Gold Coast has become a hot spot for commercial property investors in a resurgence since the Global Financial Crisis.

On the back of a projected 51 per cent population growth by 2036, more than 1.5 billion in infrastructure expenditure in the immediate area and ongoing concerns about Sydney and Melbourne’s property market, investors are eyeing off the area as their next investment destination.

Daniel Cullinane from Colliers International’s investment services division says he is “very optimistic” about the future of Southern Gold Coast commercial property.

“I live and breathe the Southern Gold Coast and to see the resurgence is a very positive thing,” he said.

“The projected population growth and increasing levels of tourism in the area are providing incentive for tenants to commit to long-term leases which is leading to lower vacancy, longer WALE’s and tighter yields for investors.

“Our team is noting between $7000 and $10,000 per square metre for premium ground floor retail space and between $4500 and $5500 for premium office space.”

In the past 12 months, significant transactions include the purchase of the Tweed Mall for $81.25 million by Elanor Investors Group, the Greenmount Beach Report for $26 million by the Sunland Group, the Gold Coast Airport’s purchase of the Former Drive In Cinema Site for more than $10.9 and the Border Park Raceway for $16.5 million.

IIt demonstrated significant levels of capital being invested from both private and institutional buyers, he said.