Commercial Research. Between the Lines. Gold Coast 4Q 2016 Sales & Year End Wrap. January 2017

Transcription

1 Commercial Research Between the Lines Gold Coast 4Q 2016 Sales & Year End Wrap January 2017

2 The 4Q 2016 was a relatively quiet period across the Gold Coast Commercial markets after a busy mid year. During this last quarter there were $73.147million change hands, a swift drop from the high achieved during the 3Q 2016 of over $272 million. The number of sales remained high however the average deal size had reduced to just $1.179 million representing the higher volume of strata sales recorded this period. This three month period between October and December 2016 saw Industrial re-establish its dominance representing more than 40% of all transactions, followed by Retail at 20.47%. The asset classes which have been growing in demand around much of Australia including Child Care and Medical represented a high 13.47% of the total sales during this last quarter of This brings the total Commercial sales amount to close to $632 million across the Gold Coast market during the 2016 period which represents around half of the $1.25billion which was transacted during the 2015 calendar year. While 2016 saw a flurry of investment activity during the 3Q most other periods remained relatively subdued in comparison to the record breaking 2015 calendar year. The major driver of this decline comes from the more limited supply of stock on the market and the pricepoint in which it sat; during 2015 we witnessed a greater volume of high value hotel transactions together with major development site and commercial transactions which were fuelled by the high interest by overseas buyers. While the volume of sales in 2016 has reduced, the demand for stock has not, with strong property fundamentals and affordable financing resulting in growing private investor interest in commercial assets. More owners are opting to retain their assets as alternative investment yields remain low given the current low bond rate which has put continued pressure on commercial property yields as this growing pool investors compete to enter the market. Demand for this lower price point assets will remain strong into 2017 however some caution around investment yield should be taken Calendar Year Commercial Transactions By Asset Type R etail 25.09% Hotel 30.75% Medical/C hild C are 1.98% Indus trial 17.58% C ommercial 17.95% Sales: Sales: $ $ mill mill (237 ( 237 Transactions) Transacations) Development 6.66% Source: Ray White

3 Commercial Street Name Suburb Price Date Land NLA Yield Freehold/Strata 201/14 Bruce Avenue Paradise Point $405,000 Oct S Glenferrie Drive Robina $820,000 Nov S Glenferrie Drive Robina $501,000 Oct S 138 Queen Street Southport $851,000 Dec F 44/2 10 Eighth Avenue Palm Beach $121,000 Nov S 16 22/105 Scarborough Street Southport $3,950,000 Oct-16 1, % S Retail Street Name Suburb Price Date Land NLA Yield Freehold/Strata 137 Currumburra Road Ashmore $4,750,000 Oct-16 5,882 1, % F 2/22 Crombie Avenue Bundall $2,200,000 Oct % S 3/18 Hutchinson Street Burleigh Heads $405,000 Oct S 3 & 5/99 Griffith Street Coolangatta $700,000 Oct % S 1/56 Griffith Street Coolangatta $630,000 Nov S 6/2378 Gold Coast Highway Mermaid Beach $70,000 Nov S 2251 Gold Coast Highway Mermaid Beach $4,750,000 Oct % F Lot 404/18 Cypress Avenue Surfers Paradise $1,095,000 Dec % S 17 Orchid Avenue Surfers Paradise $370,000 Oct S Source: Ray White Commercial

4 Industrial Street Name Suburb Price Date Land NLA Yield Freehold/Strata 1 Calabro Way Burleigh Heads $950,000 Nov-16 2,275 F 70 Hutchinson Street Burleigh Heads $1,150,000 Oct-16 3,367 F 37 Central Drive Burleigh Heads $722,250 Oct-16 1,605 F 16/9 15 Sinclair Street Arundel Undisclosed Oct S 25 Demand Avenue Arundel $528,000 Nov-16 3,119 1,500 F Ivan Street Arundel $1,800,000 Dec-16 3,750 2, % F 45 Newheath Drive Arundel $823,000 Nov-16 2,000 F 9/42 Dominions Road Ashmore $172,500 Oct S 225A Brisbane Road Biggera Waters $290,000 Nov F 56 Sunshine Boulevard Broadbeach Waters $10,100,000 Nov-16 4,952 4,000 F 1 Nov Ramly Drive Burleigh Heads $286,000 Oct S 6/14 16 Ramly Drive Burleigh Heads $285,000 Dec S 2/8 Fortitude Crescent Burleigh Heads $323,790 Oct S 5/33 Central Drive Burleigh Heads $420,000 Oct S 2/65 Township Drive Burleigh Heads $340,000 Nov % S 16/2 Calabro Way Burleigh Heads $510,000 Oct S 3/35A Ern Harley Drive Burleigh Heads $399,000 Oct % S 10 Ern Harley Drive Burleigh Heads $1,465,000 Oct-16 2, F 18 Junction Road Burleigh Heads $1,250,000 Dec-16 2, F 10 Ramly Drive Burleigh Heads $840,000 Oct-16 1,829 F 12/42 Export Drive Molendinar $258,500 Dec S 18/6 8 Enterprise Street Molendinar $340,000 Dec S 2/5 Expansion Street Molendinar $340,000 Nov S 17 Manufacturer Drive Molendinar $760,000 Dec-16 1, F 3/7 Distribution Avenue Molendinar $195,000 Oct S 7/511 Olsen Avenue Molendinar $281,000 Nov S 5/2 Spencer Road Nerang $435,000 Oct-16 S Source: Ray White Commercial

5 Industrial (continued) Street Name Suburb Price Date Land NLA Yield Freehold/Strata 7/511 Olsen Avenue Southport $280,500 Nov S 4/1 Pirelli Street Southport $420,000 Oct S 7 Windmill Street Southport $690,000 Nov F 3 Anne Street Southport $780,000 Nov F 2/11 Bailey Crescent Southport $102,000 Nov-16 S 4/11 Bailey Crescent Southport $115,000 Nov-16 S 1/11 Bailey Crescent Southport $115,000 Nov-16 S 3/11 Bailey Crescent Southport $120,000 Nov-16 S 45/3 15 Jackman Street Southport $260,000 Dec S Olympic Circuit Southport Undisclosed Oct-16 2,270 1,042 F 1 5 Pirelli Street Southport $420,000 Oct S 18 Kohl Street Upper Coomera $1,450,000 Oct-16 1, F 7/15 John Duncan Court Varsity Lakes $650,000 Oct % S Other Street Name Suburb Price Date Land NLA Property Type Yield Freehold/ Strata 2 8 Nesbit Street Southport $2,600,000 Oct-16 1,619 Child Care 5.77% F 60 Stevens Street Southport $700,000 Nov Development F 471 Scottsdale Drive Varsity Lakes $1,787,682 Oct-16 4,367 Development F 61 West Burleigh Road Burleigh Heads $895,000 Dec Development F 285 Southport- Nerang Road Southport $4,100,000 Nov-16 5,183 Development F 6 George Street Southport $530,000 Nov-16 1, Development F 2523 Gold Coast Highway Mermaid Beach $3,000,000 Nov-16 1,222 Hotel & Leisure 3.90% F 610 Oxley Drive Biggera Waters $7,250,000 Nov-16 7,382 3,000 Medical & Misc. F Source: Ray White Commercial

6 Case Study Lot 2/22 Crombie Avenue, Bundall Qld Commercial Auction Lot 2/22 Crombie Avenue offered a rare and strategic opportunity to secure a prime-positioned and iconic, 610m 2 Bundall Road strata showroom property. With a brand new five (5) year lease with two (2) by five (5) year options to ALL, the property offered a strong tenant covenant with a gross rent of $192,150.00* + GST per annum. Prominently positioned on a major intersection, the property is located within the company of other high-profile tenants such as Masters, Forty Winks, Amart All Sports and JB Hi-Fi. The main aspects of Lot 2/22 Crombie Avenue, Bundall were: 610m 2 * Mixed Use Fringe Business Precinct strata site; Prominent Bundall Road & Crombie Avenue corner; Iconic corner with 50,000+* cars passing daily; Annual gross rent of $192,150.00* + GST; Located within the vicinity of a number of other high-profile brands. Strong interest was received during the campaign, so much so that the property sold prior to auction for $2,200,000.00*. Sales Analysis Lettable Area: 610m 2 * Land Area: N/A Strata Vendor: Private Seller Sale Date: October 2016 Enquiries: 93 Registered Bidders: N/A Sold Prior Sale Process (Auction) Marketing Time Frame: 4 weeks Sales Price: $2,200,000.00* Marketing Budget: $14, NLA Rate/m 2 : $3,606.55/m 2 * Yield: 6.60%* (net) Gross Rent: $192,150.00* + GST Brad Merkur b.merkur@rwsp.net Simon Robertson s.robertson@rwsp.net Source of Enquiry Ray White database Agent's personal database Online Signage Print media All text and information contained within this Case Study is indicative only. *Approximate

7 Case Study Lot 404/18 Cypress Avenue, Surfers Paradise Qld Commercial Auction Shop 404/18 Cypress Avenue offered a unique opportunity to acquire a 118m 2 prime retail offering. With a brand new five (5) year lease at a net rental of $79,568.80p.a*, the lease also provided for two (2) five (5) year options. As such, the property offered secure income that could continue until The main aspects of Shop 404/18 Cypress Avenue, Surfers Paradise were: 118m 2 * prime retail property; Main road frontage; Captive customer audience; Brand new five (5) year lease to national brand; Annual net rent currently of $79,568.80p.a* + GST; Well established tenant. Strong interest was received during the campaign, and bidding was strong on the day of the auction with multiple bids being placed. The sale price that was achieved was roughly 35% above the initial bid. As such, the property sold at a yield of 7.27% and a price of $1,095,000.00*. Steven King s.king@rwsp.net Sales Analysis Lettable Area: 118m 2 * Land Area: N/A Strata Vendor: Private Seller Sale Date: November 2016 Enquiries: 26 Registered Bidders: 5 Sale Process (Auction) Marketing Time Frame: 4 weeks Sales Price: $1,095,000.00*. Marketing Budget: $2, NLA Rate/m2: $9,279.66/m 2 * Yield: 7.27%* (net) Net Rent: $79,568.80p.a* + GST Source of Enquiry Investor Agent's personal database Online Ebrochure All text and information contained within this Case Study is indicative only. *Approximate, information correct as at September 2016

8 Research _Know How Research Vanessa Rader Head of Research T (02) M E vrader@raywhite.com Ray White Commercial Gold Coast Commercial Gold Coast Level 2, 50 Cavill Avenue, Surfers Paradise, Queensland 4217 T (07) The information provided in this report is in good faith and has been derived from sources deemed accurate. The reproduction of any information herewith is strictly prohibited without the prior consent of Ray White Commercial. This is general information only and should not be considered a comprehensive statement on any matter and should not be relied upon as such. Neither Ray White Commercial nor any persons involved in the preparation of this report accepts liability for its contents. All forecasts and estimates are based on a set of assumptions, which may change. Refer to the terms and conditions available on the Ray White Commercial website raywhitecommercial.com