Savills Sunshine Coast office has delivered a diverse range of transactions in the past 12 months, with the hallmarks being the large volume of investment sale activity.
Trends in 2018
Overall, we have seen strong interest from investors looking for quality tenanted investment property, but there has been limited stock levels and motivated sellers were thin on the ground.
While investment activity recorded during the first half of the year was stronger, investors have continued to search the market for quality deals during the back end of 2018.
Quite often we have witnessed sellers expecting returns between 6.5-7% to transact, while buyers preferred to hold out for better returns.
Apartment sites in demand
Quality development sites have been sought after by buyers looking for financially feasible options to produce better quality product and returns.
Higher end apartment sites have been in demand as developers have been able to capitalise on producing sub-optimal developments with higher quality specs in order to secure funding,
This is also coupled with demand for 3 bedroom higher quality apartments which are selling better within the current climate.
Industrial market remains popular
The Sunshine Coast industrial market has continued to remain buoyant on all fronts, with owner occupier and vacant land sales being most popular. Strong construction, both in the residential & commercial sectors and SMSF buyers, has been the main driving force.
Once again industrial has remained one of the strongest sectors in the market with a lot of land sale activity as businesses looked to expand into custom designed headquarters and developers continued to produce strata products for sale.
Predictions for 2019
We expect to see the Sunshine Coast market continue to tick along nicely fueled by low interest rates, strong employment and steady local economy growth.
We could begin to see more interstate investors look towards the Sunshine Coast for opportunities throughout 2019, as the region continues to deliver on all fronts.