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OPPORTUNITIES can be seen everywhere in a suppressed market and there are plenty in this cycle. The commercial division of Ray White Surfers Paradise Group is experiencing a shift in confidence brought about by new product and a rationalisation of rates, where in some instances square metre prices have fallen from $550 to $350 per sq m.
Ray White joint managing director Greg Bell, says the ‘air has been taken out of the bubble’.
Buying
“We’re seeing a sentiment change and there’s a lot of interest from interstate buyers who see the Gold Coast as good value,” he says.
“We have definitely hit rock bottom and now we begin the slow recovery. Industrial and office space is starting to accelerate. There are new businesses entering the market and others that are expanding.”
Bell says that while the number of new business far outweighs the number of those closing, there are still a number of hurdles to jump.
“People are hunting around for signs and there are plenty of them,” he says.
“Interest rates are still quite low, bank lending is freeing up and there’s a return of confidence that we haven’t seen for a couple of years. We are excited by the number of opportunities and there are lots of them for those willing to work hard.”
Leasing
Office market leasing is also on the up after figures last year showed the Gold Coast had one of the worst gluts of product in Australia at 25 per cent. Now owners are offering incentives including fit-out and rent relief options.
“Southport is still the CBD of the Gold Coast and we see Robina as a great retail centre. From 2011 to 2015, there will be plenty of movement as businesses want to be closer to the action. Surfers is refreshing also, there’s new buildings with new design and a renewed ambience,” says Bell.
Investment
In today’s technological age, information is increasingly current and focused upon the short term.
According to a Colliers International report, Investment Alternatives: Property V Shares, property will not be as profitable in the short term as a general rule compared to say the sharemarket.
The advice to buyers is to look to the future and what will be happening in two years, five years or 10 years time and the returns expected between now and then. This is where value will be derived.
The report suggests those looking for stability and long term growth are encouraged to consider property as an investment vehicle.
It says as an investor seeking capital growth, the investment in property must be considered before the peak of the market otherwise the strongest anticipated growth will be forfeited. Some of the best returns are made while the market is uncertain.
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