Investors line up for commercial properties
MORE than 250 people have logged their interest in 18 business properties set for auction by Ray White Commercial tomorrow morning.
The Commercial and Industrial Event auction follows Ray White’s residential auction, The Event, held last month. Ray White Commercial director Greg Bell said strong yields had drawn strong interest from potential buyers.
“The market is as healthy as I have seen it in many years, with many investors drawn by attractive yields which are supported by the strength of the local economy,” he said.
Mr Bell said the Gold Coast market recorded $1.28 billion in commercial property sales over 2018.
“Investors chasing returns and potential capital growth are finding limited options across the board among various asset classes,” said Mr Bell.
“With bank interest rates on term deposits as low as they are, and talk of a potential cut to the official cash rate this year, cash is no longer king.
“The share market has also witnessed a lot of volatility this past year, leaving many investors nervous.
“That’s led more investors to start actively looking at commercial property assets as a place to park their capital. The yields are very attractive and, in some key sectors, we have seen solid capital growth.”
Mr Bell said strong interstate migration had helped maintain residential volumes and inquiries.
“The commercial market is benefiting significantly from the tide of spending more people bring to the Gold Coast and despite tighter credit conditions the Gold Coast commercial market has held up remarkably well especially for quality properties,” he said.
“The level of inquiries we have received ahead of this year’s auction program is a very encouraging sign for the first quarter.”
The auction will be held at the Gold Coast Turf Club in Bundall from 10am.