Happy New Year tipped

THE commercial property market may be showing signs of slowing down but valuer Herron Todd White isn’t predicting any major change next year.

The Gold Coast sector, office and retail, has seen a number of so-called “big ticket items” sell with supermarket anchored centres being a particular target for investors.

“Over the latter part of 2017 market conditions have indicated signs of coming off, not necessarily in value levels and reflected yields, but more so in investor participation and interest and general marketplace fervour,” the report authors note.

“Notwithstanding this observation, we do not anticipate any substantial variation in market conditions moving into 2018.”

But the authors warn of a threat to lenders and buyers from a market correction should rates rise or if interstate or international buyers cut back on their activity.

HTW’s final report lists the standout retail sales of 2018.

●Pacific Pines Coles, Pacific Pines – sold in July for $30.025 million – yield of 4.63 per cent. A new, freestanding, state-ofthe-art, full-line Coles Supermarket and Liquorland store, completed in November last year. WALE 15 years.

●Pinnacle Pines Shopping Centre, Pacific Pines sold in 2017 for $19.7 million – yield of 5.35 per cent. Neighbourhood shopping centre anchored by a freestanding McDonald’s and a 7-Eleven service station.

●Mermaid Plaza, Mermaid Beach – sold in June for $8.27 million – yield of 7.24 per cent. Mixed-use, part two-level beachside strip complex.

●Beaudesert Central Shopping Centre, Beaudesert – sold in June for $16.85 million – yield of 6.46 per cent. Neighbourhood shopping centre anchored by Woolworths.

●Mudgeeraba Markets and Franklin Square, Mudgeeraba – sold June 2017 for $38.8 million – yield of 5.75 per cent. Mudgeeraba Markets is a shopping centre anchored by Woolworths plus 26 specialty tenants. Franklin Square is a two-level strip retail and commercial complex.

●Piazza on The Boulevard, Surfers Paradise – sold in May for $22 million. A land title with a five-level retail complex including basement and upper level car parking. Total net lettable area of 9061sq m with a high number of vacancies. The buyer is looking to reinvigorate the facility.

●Worongary Town Centre, Mudgeeraba – sold in March for $46.3 million – yield of 6 per cent. Shopping complex with six buildings anchored by a Coles plus a service station and 41 specialty tenancies.