Queensland | 27 According to Michael Parisi of Commercial Gold Coast, retail properties on the Coast are yielding 4-5%, figures that rise to 5-7% for industrial assets, and 7% for office space. Michael explains that yields are a key driver of the market at present. He adds that as southern buyers migrate to south east Queensland to live, they are “bringing with them an appetite for local commercial product.” The industrial market is experiencing vacancy rates below 5%, rising to 10% for office space. Michael adds, “Outside of Surfers Paradise, vacancies are tight. Within Surfers Paradise there is a high percentage of vacancies, and this will not change until there is an increase in tourism from overseas.” Michael notes that the Gold Coast/south east Queensland area has weathered storm surges with rainfall measured in meters, and the recovery is slow owing to lack of availability of building supplies and tradesmen. Despite this – and the slow return of tourism, Michael believes the Gold Coast is “showing its resilience in bouncing back to business as normal”. “Prices for property are driven up because of increased demand and low supply. This equates to competition even when average properties come to market. Sound commercial properties are now regularly achieving yields in the high 3-4% range,” says Michael. Michael Parisi michael.parisi@rhc.com.au Gold Coast
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