The sale of two Gold Coast commercial properties for a total of $4 million has set the pace for a strong commercial property market in 2019.
Both properties, which settled over the past week, sold above their reserve after drawing significant investor interest from local and national buyers.
AMP Ltd paid $2.35 million under the hammer for a 600sqm retail building at 10 Harvest Court, Southport. The price was $300,000 above the reserve, with the deal extending AMP’s foothold in the street.
The Harvest Court property, which drew 11 bidders, is located next to the highly active Ferry Road Markets precinct and adjacent to a property acquired by AMP two years ago.
The property has a site area of 1500sqm with development approval for a three-storey medical-office building.
The second property, an office-retail holding at 7-8/80 Brisbane Road, Labrador, sold to a Gold Coast investor for $1.65 million. It has a net lettable area of 376sqm with an A-grade tenant on a long-term lease. The sale was struck on a yield of 8.65 per cent.
Ray White Commercial’s Michael Willems, who negotiated both sales, said the Labrador property drew six registered bidders and was highly sought after.
“The vendors of both properties were determined to sell at or prior to auction, and we’re pleased to have achieved a very strong result from the campaign,” said Mr Willems.
Ray White Commercial Gold Coast director Greg Bell said the latest sales indicated the broad appeal of commercial assets in the current low-interest-rate environment.
“There’s been a general rise in capital flowing into commercial property nationally, and the Gold Coast is shaping up as a prime target market to capture some of this investment,” said Mr Bell.
“More property investors are paying attention to the attractive yields and upside growth potential that commercial assets can offer.
“These auction sales, both of which were well above the reserves set by the vendors, affirm the underlying appeal of the Gold Coast commercial market to both large and small investors.”
The sales come on the heels of a tightening of the Gold Coast’s office market over the past year, with market expectations that office vacancies will continue to fall in 2019. Industrial properties are also in demand amid diminishing land supply across the Gold Coast.
Ray White Commercial is expecting the sales momentum to continue for its upcoming mini-auction next month which will bring eight properties to the market.
The program is being held from 11am on May 2 at the Gold Coast Turf Club in Bundall.
Properties on the program include:
• Six prime retail shops at 9-13 Waldron Street, Yarrabilba, to be sold as individual lots;
• An industrial property at 11-13 Olympic Circuit, Southport, on a 2002sqm site;
• A high-profile site tenanted by Mitre 10 at 9 Stewart Road, Currumbin Waters.