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Queensland Economic Outlook ‘Positive’: Deloitte

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Queensland Economic Outlook

Construction and development appeared healthy to Deloitte’s analysts, who attributed some of Queensland’s strong economic outlook to high levels of interstate migration and international tourism, which have encouraged a growing list of tourism-related construction projects.

Queensland’s international tourist arrivals are expected to remain solid over the forecast period, averaging growth of 4.7 percent out to 2021.

There were reasonable gains in engineering activity in Queensland, and Cross River Rail was in the planning stages.

The report also put a focus on livability and housing affordability. In the midst of the continuing debate over house prices and quality of living, Deloitte reported that Queensland has less cause for concern.

Queensland’s place in the national picture of housing affordability is a comparative advantage. In the midst of a housing price boom, living in Queensland remains more affordable than in the southern states.

While Sydney and Melbourne house prices have experienced year-on year growth in the double digits, Brisbane has experienced a modest 3.5 per cent growth.”

Despite this optimism, Queensland was revealed to be mirroring the national trend, showing a slight decline in outright home ownership and owners who have a mortgage.

Rental stress was recorded to be higher than the national average, with more Queenslanders renting than owning their own home compared to the rest of the country.

“But with a modest decline in rent in the June quarter CPI figures, increasing vacancy rates, and new supply from an easing residential construction boom the conditions could result in Brisbane becoming a renter’s market,” Deloitte said.

Job growth was accelerating in Queensland and while population growth had “bottomed”, it was now back in line with the national average — although it remained below the level experienced in the state five years ago.

In less positive news, CommSec’s latest State of the States report found Queensland’s economic performance had slipped to sixth place, hampered by weak business investment and retail spending.

CommSec chief economist Craig James said that despite a recent surge in residential construction, oversupply is still a concern. Queensland would benefit from increased revenue generated by the state’s gas industry as well as spending that resulted from a rise in employment.

Queensland Treasurer Curtis Pitt defended the state’s ranking saying that the CommSec report understated the state’s performance.

“Most people’s economic indicator is whether they have a job or not and both the DAE and CommSec reports highlight our strong performance in job creation,” Pitt said.

Of Queensland’s population of 4.7 million, more than half were recorded to be living outside of the state’s capital city. Queensland’s south-east corner, including Brisbane, Gold Coast, and Sunshine Coast, saw a growth rate in population twice that of the rest of the state.

Despite Queensland’s size, urbanization has taken hold — 66 percent of the population living within 0.6 percent of Queensland’s total area.

Originally Published: brisbaneinvestor.com.au

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Stockland sells beachfront site on the Sunshine Coast for $8.3m

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Stockland sells beachfront site on the Sunshine Coast for $8.3m

Queensland builder and developer RGD Group has purchased a beachfront development site on the Sunshine Coast in Queensland from Stockland for $8.3 million.

RGD plans to build a $70 million mixed-use apartment project on the 3977-square-metre site at Lot 905 Bokarina Boulevard, Bokarina Beach. The sale closed with an approval for 63 apartments and about 500sq m of retail space.

The sale is part of Stockland’s long-term strategy to invite external investment into its Oceanside masterplanned community in the area, which includes residential, retail and retirement projects.

Colliers International’s Baydn Dodds brokered the deal.

Brisbane office sale

Brisbane investor Renweed Pty Ltd has bought a 12-storey office building at 26 Wharf Street in the Brisbane CBD for $9.8 million.

It plans to refurbish and re-lease the property as a premium boutique B-grade tower.

Malaysian owner HCK has owned it since 2012 and sold the property to invest outside Australia. It will also be selling its other Brisbane CBD tower, 116 Adelaide Street shortly.

Transaction Property Services’ Marc Stuart represented Renweed while Colliers International’s Sam Biggins and Tony Wang brokered the sale.

Three’s a charm

A private buyer has bought three adjoining warehouses in Melbourne’s west for $2.8 million on a yield of 6.81 per cent.

The individually titled lots at 90, 94 and 98 Proximity Drive, Sunshine West in Melbourne have a total building area of 1907sq m.

They have secure gate access and yards, three-phase power and staff amenities.

CBRE’s Ricardo Cappelletti, Fergus Pragnell, Tom Murphy and Tim Homes negotiated the deal.

Medical centre changes hands

Charter Hall has sold a vacant medical centre in eastern Melbourne for $1.46 million to an owner-occupier.

Sitting on 1418sq m, 529 Mitcham Road, Vermont had an existing fitout for five consultation rooms, ready for immediate occupation as well as a permit for three medical practitioners.

CBRE’s Sandro Peluso, Josh Twelftree and Jimmy Tat finalised the deal.

Candle burns brightly

A local investor has paid $3.9 million for two office buildings at 60 Edmondstone Road, Bowen Hills, just north of the Brisbane CBD.

The 990sq m blocks are a mix of office, boardroom, gym and outdoor terrace spaces. They sit on a 2068sq m site with 35 car park spaces.

The site has a history of candle and soap manufacturing, dating back to the 19th century.

JLL’s Andrew Havig negotiated the deal.

One sip and you’re hooked

Developer Evans Long has sold eight of 20 strata lots at the neighbourhood commercial centre at 8 Fairfax Street, Sippy Downs in Queensland for more than $10 million.

Evans Long made a decision to strata title Central Sippy Downs. made up of three distinct buildings sitting on 7843sq m to target smaller commercial owner-occupiers and investors.

Individual sales of $540,000 to $3.6 million were struck at yields between 6.1 and 6.8 per cent. Evans Long is planning to develop another similar two-storey building on site.

The deal was marketed by Colliers International’s Nick Dowling and Daniel Vella.

Stockland sells beachfront site on the Sunshine Coast for $8.3m 1

Inner city warehouse

Private company Seatech Industrial Pty Ltd has bought a two-storey 450sq m warehouse building in Chippendale in inner city Sydney for $4.8 million at a yield of 3.75 per cent.

The 259sq m site at 18 City Road offers development upside and is suitable for a mixed-use and student accommodation development.

Savills Australia’s Tom Tuxworth, David Hickey and Nick Lower closed the deal.

Source: www.afr.com


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One of only five Hastings Street retail freehold’s sold for $5.6 million

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One of only five Hastings Street retail freehold's sold for $5.6 million

An interstate investor purchased a Noosa Heads retail institution “Signature on Hastings”, for $5.6 million following an off-market campaign.

Situated at 18A Hastings Street, (pictured in title) the asset was one of only five single use freeholds left on the famous strip.

It comes as a 180 sqm NLA retail investment on a 97 sqm allotment.

The vendor had held the property for over 30 years.

The property produces an annual income of $306,000 p.a. net* + GST.

It was sold by Ray White Commercial Noosa and Sunshine Coast North directors Paul Forrest and Paul Butler.

Mr Forrest said, “Hastings Street is highly sought-after by wealthy investors and remains very tightly held, with freehold properties particularly desired.”

“The buyer already owns several assets on the strip, so they were one of a few parties we approached.”

“We’re delighted that following the success of our off-market campaign and long history of successful sales, we’ve been appointed as exclusive agents for the sale of ‘Peter Alexander’ at 28 Hastings Street (pictured below),” he added.

One of only five Hastings Street retail freehold's sold for $5.6 million..

Mr Butler said Signature on Hastings was a Noosa institution and was a unique concept store that was well-known by locals and tourists alike.

“The shop opened its doors on Noosa’s now-famous Hastings Street shopping strip in 1990 and it’s genuinely adored by everyone,” he said.

“The creation of interior designer Gail Hinkley, it started as a small women’s clothing and gift store, and has now grown into a well-established name in the homeware industry.”

“Hastings Street is Queensland’s premier tourist destination and retail street. It vastly out-strips the Gold Coast, Port Douglas and Mooloolaba Esplanade,” Mr Butler concluded.

Source: www.propertyobserver.com.au

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FIRST COMMERCIAL BUILDING APPROVED FOR MAROOCHYDORE’S NEW CBD

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FIRST COMMERCIAL BUILDING APPROVED FOR MAROOCHYDORE’S NEW CBD

The first commercial development approved for the Sunshine Coast’s new cutting-edge central business district is a sign of the region’s “coming of age”, the project’s developer says.

The $30 million Foundation Place is set to become the first building in SunCentral’s Maroochydore city centre, with construction expected to start in June following strong interest from businesses looking to get a foothold in the building.

The eight-level, energy-efficient office complex features more than 5000 square metres of space, incorporating ground-floor retail, five levels of commercial and office space as well as car parking across two podium levels.

It will also become the home of its developer, Sunshine Coast’s Evans Long, with the project only needing pre-commitments of about 20 to 25 per cent to proceed.

“We’ve got enough enquiry to build it more than twice. We’re comfortable with the amount of enquiry that we have at this point,” Evans Long director Dirk Long said.

Transact Property Group associate director Daniel Cullinane said rental and sales enquiry in the first week of project launch had been strong, especially from big and small local businesses looking to stake their claim in the new CBD.

“We’ve been inundated with enquiry over the last week from 100 square metres to full floors – it’s just been crazy,” he said.

FIRST COMMERCIAL BUILDING APPROVED MAROOCHYDORE’S NEW CBD

An artist’s impression of how the Maroochydore CBD will look.

“They just see the potential of the CBD and that’s the biggest draw card. From the initial enquiry, there is a really diverse range of people who are coming through.

“You’ve got people who are household names and you’ve got people that you have never heard of, but they are all those entrepreneurial, visionary-type of businesses.”

Office rents range from $380 to $400 per square metre net, with ground floor retail rents priced between $750 to $800 per square metre. Sale prices are about $5450 per square metre.

Businesses can buy or lease a full floor of the building or as little as 80 square metres of office space with retail zones also available for sale or lease.

Foundation Place will be the first private building on the Sunshine Coast to have a Five-Star NABERS rating.

However, as well as a plethora of sustainable features and a design that makes the most of the coast’s sub-tropical climate, the building also heralds the start of something much bigger for the entire region, Mr Long said.

He said population growth, a significant infrastructure program, and a commercially-minded local council meant that the coast was about to economically come into its own, which had positive ramifications for generations of its residents.

“The wave always follows that. You’ve got to be there, and you’ve got to be ready, because once the wave comes through it’s too late to try put your foot on blocks of land and create a development business because you can’t start one from scratch,” Mr Long said.

“It’s a coming of age for the Sunshine Coast and with that comes the detractors but with that comes the positivity as well.

“We’ve kept our identity, we’re going to have a population that gives us our own economies of scale so there is depth in the market, and there is a future for us and for future generations.”

Source: commercialrealestate.com.au

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