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Sunshine Coast next hot property market

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Queensland’s Sunshine Coast is a burgeoning commercial property market, thanks to four major projects taking place in the region. The latest CBRE Viewpoint report has found that the alignment of four major developments in the region have propelled the Sunshine Coast into a period of major growth, one that hotel operators and investors should make the most of.

The four key projects that will drive population growth and property development of the area are the construction of the Sunshine Coast Public University Hospital; the planned Maroochydore Principal Development Area; the proposed expansion of the Sunshine Coast airport; and the development of the residential area of Aura (formerly known as Caloundra South).

CBRE managing director Rem Rafter, believes these four projects make the region an attractive option for investors.

“These key projects will redefine the Sunshine Coast’s property landscape, presenting new opportunities that will attract both interstate and offshore investors.”

Each of the four major projects should lead to further population growth and, in turn, commercial land development. The Sunshine Coast Public University Hospital and the associated Kawana Health Campus, are due for completion this year. Craig Godber, CBRE’s research manager, suggested that there would be development flow-on effects from the project, including a future town centre and commercial precinct.

The Maroochydore City Centre Priority Development Area (PDA), which covers 62 hectares of land, is intended as a new central business district for the Sunshine Coast region. Included in the development are 165,000 sqm of commercial space and 2000 private dwellings. Property within the development will become available incrementally over the next two decades.

Aura is currently the largest residential city development project and will be constructed over a 30-year span. Upon completion, there will be approximately 20,000 residences, housing an approximate population of 50,000. The proposed expansion of Sunshine Coast airport would also see a significant boost in tourism to the region.

Glenn Price, CBRE’s senior manager of hotels in Queensland, believes these factors make the region and Queensland in general an enticing market for hotel operators and investors in 2016.

“Over the past few years, the Queensland hotel market has been starved of quality opportunities, however, improving conditions in 2016 will see demand strengthen for hospitality assets in the region.

“The Sunshine Coast is a desirable area for tourism and living, underpinned by strong local growth off the back of an expanding population and a number of significant projects such as the new Maroochydore City Centre and Public University Hospital.

He added: “The lower Australian dollar is also supporting the holiday market, with more tourists from both overseas and interstate taking advantage of the more favourable economic conditions to visit some of Australia’s most sought after destinations.

“The Sunshine Coast boasts some quality pubs and gaming assets, which will be of strong interest to both corporate and private buyers in 2016.”

“In 2015, we saw multiple new entrants to the Queensland hotel market and we expect that to continue in 2016, with a particular focus from interstate buyers looking to capitalise on the higher returns on offer.”

Price also suggested that larger than average yields will likely attract investors.

“We expect the Sunshine Coast will entice a number of new entrants this year, with it offering yields of 10-12 per cent for going concern hotels when compared with the NSW market, which offers around 8-9 per cent.

“Investment assets will also be of strong interest to buyers, with those backed by secure covenants to be on the radar of investors, offering yields of circa 5.5-7 per cent.”

 

Original Published On: http://www.theshout.com.au/

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High-profile leases snapped up

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High-profile leases snapped up

Bentleys Accountants and Coronis Real Estate each signed new five-year leases with options at 9 Nicklin Way, Minyama, where both deals were struck by CBRE’s Brendan Robins and Ryan Parry.

After a 38-year base in Caloundra, Bentleys have centralised their Sunshine Coast office to Minyama and Coronis has moved from Mooloolaba, into the 1200sq m A-grade building.

Mr Robins, who concluded the Bentleys deal, said the accountants have just executed a first-class office fit-out over 426sq m on level 1, and will be paying about $180,000 gross per year plus GST.

Coronis have moved into 290sq m made up of ground floor retail and first level office. They spared no expense on their new fit-out which includes a new espresso coffee offering with alfresco dining on the ground floor.

Mr Parry negotiated the new lease on behalf of the property owner and they will be paying about $130,000 gross per year plus GST.

“We’re pleased to have concluded two long-term leases over more than 700sq m of office space for our client, in quick succession. It is an outstanding result,” Mr Parry added.

There are only two remaining opportunities within the property with 89sq m on the ground floor and 185sq m of space on the first level.

Originally Published: www.sunshinecoastdaily.com.au

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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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Three Major Regional Retail Centres In Queensland Sell For $82 Million

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sunshine coast

Three major regional neighbourhood shopping centres have sold in Queensland over the past week with a collective value of over $82 million.

Two Coles-anchored regional shopping centres and a large-format retail centre sold after attracting strong interest from the interstate.

The Coles-anchored Peregian Springs Shopping Centre sold for $41.5 million, with an initial passing yield of 5.35 percent. The centre is reported to be 99.6 percent occupied.

An unnamed Queensland investor acquired the centre on Queensland’s Sunshine Coast following a formal expression of interest campaign conducted by JLL and CBRE on behalf of Alceon Group and CPRAM Investments.

The 4,800 square metre Peregian Shopping Centre was last sold for $20 million in 2012.

Peregian Shopping Centre in Caloundra sold to private investors for $41.5 million

A second regional retail asset 15km south of the Cairns CBD was sold to the ASX-listed Shopping Centres Australia for $24,750,000.

The centre is anchored by a Coles Supermarket and is supported by 12 specialty retailers and a Coles Express service station pad site.

Shopping Centres Australia is a REIT with assets predominantly anchored by non-discretionary retailers across Australia.

Vendor, the industry superannuation property fund ISPT’s retail property trust IRAPT was represented by JLL’s Jacob Swan.

“The centre attracted a strong level of interest from institutional investors, syndicators and high net worth individuals as a result of the extensive 10.91 years WALE and the 20-year Coles lease, providing outstanding long-term security,” Swan said.

Neighbourhood transaction volumes in Queensland increased by 15 percent in the last 12 months to September 2017 despite being 10 percent lower on a national basis over the same period.

The results highlight the depth of activity and opportunities in Queensland, while other markets around the country remain more stock-constrained.

Tourism in far north Queensland injects $4.7 billion into the region’s economy, with over 1.04 million visitors to Cairns last year.

A West Australian-based syndicator has acquired the Woolcok Street Supa Stores in TownsvilleWest Australian-based syndicator Properties and Pathways acquired a large format retail centre in Townsville, northern Queensland for $16 million.

The deal, which was struck on behalf of a North Queensland-based private investment group, reflected an initial yield of 7.42 percent.

CBRE’s Peter Rossi negotiated the sale of the Woolcock Street Supa Stores with Quinlan Property Group’s Michael and John Quinlan.

Rossi said the campaign had attracted a high level of interest, with over
75 enquiries from across Australia.

The 7,563 square metre centre is 100 percent leased to four national tenants, including Fantastic Furniture, which accounts for 45 percent of the income.

Toyworld has been a tenant in the centre since 2004, with Intersport another long-standing tenant. The property is also the major Townsville outlet for the Salvation Army.

Originally Published: www.theurbandeveloper.com

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