Gold Coast office market continues positive trend
Investment in major public and private sector projects is translating into positive demand for the Gold Coast office market, according to the Property Council of Australia’s July Office Market Report.
Off the back of a renewed sense of confidence on the Gold Coast, the vacancy rate for office space has decreased from 15.2 per cent to 14.8 per cent over the 6 months to July 2015, says Chris Mountford, Queensland Executive Director of the Property Council of Australia.
“The Gold Coast economy is well placed, as it is currently experiencing a wave of investment in residential and tourism related products, along with construction works for the Commonwealth Games gathering pace,” Mr Mountford says.
“This means the fundamentals are right for the office market to absorb the 6,392 square metres of office space due to hit the market over the next 18 months.
“The decrease in vacancy was brought about by positive overall demand of 3,291 square metres in the six months to July 2015, taking the total demand over the last 12 months to 10,491 square metres.
“The Gold Coast is now outperforming the Brisbane CBD, Canberra and Perth CBD, but still sits above the national vacancy average of 10.4 per cent.
“Apart from C grade, which increased from 11.6 per cent to 13.4 per cent, all other segments of the Gold Coast’s commercial market experienced a decrease in vacancy over the past 6 months.
“While A grade stock continues to see positive demand, at 17.4 per cent, it maintains the highest vacancy rate overall.
“Across the different Gold Coast markets, all bar Surfers Paradise experienced positive demand from January to July, with Broadbeach reaching a low 4.2 per cent.
“With a vacancy rate increasing by 4.8 per cent to 29.9 per cent, activity in the Surfers Paradise market is lagging well behind that of Bundall (17.2 per cent), Southport (14 per cent) and Robina-Varsity Lakes (8.6 per cent).
Ends.
Market analysis for the Gold Coast can be found below.
Analysis & Commentary, Gold Coast, July 2015
Headline comments:
- Vacancy in the Gold Coast office sector decreased over the six months to July 2015
- This was due to positive demand
- Only the C Grade segment recorded negative demand over the period
- All locales experienced positive demand except Surfers Paradise
Vacancy analysis:
- Vacancy decreased from 15.2 per cent to 14.8 per cent over the 6 months to July 2015
- The vacancy decrease was due to 3,291sqm of net absorption
- Supply additions totaled 1,428sqm
By grade:
- A Grade – vacancy in this segment decreased from 18.9 per cent to 17.4 per cent due to 1,947sqm of net absorption
- B Grade – vacancy decreased from 15.5 per cent to 14.1 per cent due to 3,821sqm of net absorption. There were also 1,428sqm of supply additions
- C Grade – vacancy in this segment increased from 11.6 per cent to 13.4 per cent due to net absorption of -2,516sqm
- D Grade – vacancy decreased from 12.9 per cent to 12.6 per cent due to positive demand
By locale:
- Broadbeach – vacancy decreased from 7.6 per cent to 4.2 per cent due to 973sqm of net absorption
- Bundall – vacancy decreased from 18.0 per cent to 17.2 per cent due to 744sqm of net absorption
- Robina-Varsity Lakes – vacancy decreased from 10.4 per cent to 8.6 per cent due to 3,728sqm of net absorption. There was also 1,428sqm of supply additions
- Southport – vacancy decreased from 14.8 per cent to 14.0 per cent due to 1,276sqm of net absorption
- Surfers Paradise – vacancy increased from 25.1 per cent to 29.9 per cent due to net absorption of -3,430sqm
Future supply:
- 3,196sqm of space is due to come online in the second half of 2015
- 3,196sqm of space is due to come online in 2016
- A total of 4,924sqm of projects are mooted
Key market indicators, Gold Coast (aggregate)
Key market indicators, Gold Coast (by locale)
Media contact: Chris Mountford |M 0408 469 734 |E [email protected]