RAY White Commercial Gold Coast has been swamped with inquiries for 18 prime investment properties ahead of its first auction program of the year to be held this Thursday, February 21.
The properties have attracted more than 250 inquiries from investors looking to capitalise on the strong yields being achieved across the city’s commercial assets.
The auction program, billed as the Gold Coast’s Commercial and Industrial Event, comes on the heels of one of the best clearance rates in years from Ray White Surfers Paradise Group’s flagship residential auction, The Event, held last month.
Ray White Commercial director Greg Bell said the commercial program brings a strong list of quality properties to the market, including industrial, retail and office holdings, as well as prime development sites.
“The Gold Coast commercial market has garnered significant interest from investors across the board in the last few years and this year’s program is testament to that,” said Mr Bell.
“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.”
Research conducted by Ray White Commercial revealed the Gold Coast market recorded $1.28 billion in commercial property sales over 2018. This was more than double the sales achieved two years ago and just shy of the record $1.33 billion reached in 2017.
“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 the Gold Coast property market has been thrust into the spotlight this past year thanks to the strength of the residential sector. Strong interstate migration has helped residential volumes and inquiries hold up, while also providing a major boost to the city’s economy.
“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.
“Commercial property assets appeal to a broad range of buyers from self-managed super funds, owner-occupiers and investors large and small.
“The level of inquiries we have received ahead of this year’s auction program is a very encouraging sign for the first quarter.”
The Ray White Commercial and Industrial Event auction will be held at the Gold Coast Turf Club in Bundall from 10am.