After being hit hard by the Global Financial Crisis, the Coolangatta and Tweed Heads commercial property market is proving to be one of the top property investment hot spots in an unprecedented resurgence.
On the back of a projected 51% population growth by 2036, over 1.5 billion in infrastructure expenditure in the immediate area and ongoing concerns about Sydney and Melbourne’s property market, investors are eyeing the sunny shores of the Southern Gold and Tweed Coasts as their next investment destination.
Daniel Cullinane of Colliers International’s Investment Services division is very optimistic about the future of the Southern Gold Coast commercial property market.
“I live and breathe the southern Gold Coast and to see the resurgence is a very positive thing, the projected population growth and increasing levels of tourism in the area are providing an incentive for tenants to commit to long term leases which is leading to lower vacancy, longer WALE’s and tighter yields for investors.
“Our team is noting between $7,000 and $10,000 per square metre for premium ground floor retail space and between $4,500 and $5,500 for premium office space,” he said.
Over the last 12 months, significant transactions including the purchase of the Tweed Mall for $81,250,000 by Elanor Investors Group, the purchase of the Greenmount Beach Resort for $26,000,000 by the Sunland Group and the Gold Coast Airport’s purchase of the Former Drive In Cinema Site for over $10,900,000 and the Border Park Raceway for $16,500,000 demonstrate the significant levels of capital being invested from both private and institutional buyers.
Residential development sites are also in demand after recent revelations that after spending $14,200,000 on purchasing six adjoining beachfront allotments on Musgrave Street in Kirra, Gold Coast developer Tayside has achieved over 90% presales in its luxury ‘Iconic’ apartment building.
Director of Colliers Gold Coast Investment Services division James Crawford said “The Southern Gold Coast and Northern NSW market represents a real value proposition and hence our two most recent sales campaigns in the Tweed resulted in more than 100 enquiries and over a dozen offers from both local and interstate parties.”