The Upcoming Growth of Commercial Property in Gold Coast

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The Upcoming Growth of Commercial Property in Gold Coast
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The Gold Coast & Sunshine Coast are the Coastal Regions in Queensland that have been showing significant improvements in terms of property markets since March, 2014.The Gold Coast is one region that has shown highest improvement in the mortgage market as a result of a bounce back in the local housing market. Recording the highest average monthly rent, Gold Coast is the popular region with tenants as per the Residential tenancies Authority.

Experts say that the Gold Coast market will surprise many and will turn out to be one of the best performers of Australia during next two years. The Global Financial Crisis in year 2008 had affected the economy badly. This tourism-driven economy suffered a lot as the consumer preferences underwent a see change. Affected economy lead to the decline in job opportunities and even the property market was affected.

But recent years observed a revival of consumer and business sentiments. At the same time, there is a boom in the tourism that is expected to stay in the Gold Coast.  On an average, a quarter in Australia records 10 million holiday trips, of which the favorite destinations are the seaside towns and Coastal resorts.

Summer of 2014 saw a shift in gloomy holiday market of Queensland. A rise in tourist and accommodation or hospitality market is likely to affect the commercial real estate market of coastal regions to a large extent.

China- Australia Free Trade Agreement (ChAFTA)

Investors from China have been investing in office spaces and development of ‘Central business District’ of Australia. As per ChAFTA, there is no approval required by Mainland Chian’s investors for the investments up to $1.078 billion. Other than citizens of New Zealand and the US, this status or privilege is extended to mainland China investors too.  

With this agreement in force, experts expect a good number of Chinese Developers coming to Australian market to invest in real estate. They already are known to be investing at a premium of 25% over the market. Trends say that there is a high chance of investment in new real estate development in Capital Cities and holiday destinations like Southern Queensland.

Improvement in logistics

Logistics and transport represent 14% of the Queensland’s economy.  Like all other continents, Australia is also not untouched with the growing online shopping business. This business has a huge dependency on logistics and infrastructure. Queensland has been marketing itself as the logistics hub of the Nation.  But infrastructure seems to be an issue, as recognized by the Federal and State Government as well. Congested traffic and inter model connectivity seems to be a big issue.

At the same time, better air freight, improved road network leading to the Gold Coast is expected to benefit the online shopping business and thus create more commercial opportunities. All this will have a positive impact on the commercial real estate market.

Various other infrastructure enhancements are the reason behind this. A few projects in pipeline:

  • Passenger rail project worth $1.8 billion is expected to create good job opportunities.
  • Expansion of Pacific Fair, a $670 million project making it Queensland’s largest shopping centre.
  • Proposed mega resort worth $7 billion that is expected to affect the tourism revenue in the highly positive way. Tourism revenue is expected to increase to $8.9 billion per annum from current revenue of $1.15 billion. Additional 15000 jobs will also be created.
  • Another major project of the tourism industry is the $1 billion luxury hotel.
  • Redevelopment of Aquatic Centre at the Gold Coast is planned with an investment as high as $38 million.
  • Griffith University Health Center, a project with a sanctioned budget of $150 billion is also underway.
  • The biggest project affecting the economy positively in all aspects is the Athlete’s village for upcoming Commonwealth Games in the year 2018. This worth $700 million project is expected to bring a boom to the tourism industry and thus the economy as a whole.

Real estate in the Gold Coast is expected to grow for at least three years from now. This prediction is a result of improved market conditions, modern infrastructure and the popularity the Gold Coast has gained with the announcement of the Commonwealth Games. As per an Outlook for Residential Land 2014 to 2019 report, land has become more affordable as compared to established houses in the Gold Coast.

Falling Australian Dollar has worked in favor of the Australian tourism industry. A growing tourism industry created confidence in both inhabitants and the prospective investors. At the same time a flourishing tourism industry is expected to create more job opportunities.

It is advisable to own a commercial property in Australia before it is out of your hands. Almost $4.5 billion worth of infrastructure projects is in the pipeline in the Gold Coast That are expected to pull enough and more demand for real estate in Australia. 

 

Author Info Manish Khanna

Manish is founder of Business2sell Group of Websites. 

Business2Sell.com.au is one of the leading business and franchise for sale listing websites. We work with our business brokers, commercial agents, franchisors and private sellers to help them connect with the right buyers for their opportunities. 

With website now functional in Australia, United States, United Kingdom, Canada, New Zealand and South Africa. We have over 18,000 businesses for sale listed, with over 220 Business Broker and Commercial Agent. 

I have over 20 years of experience in Web Industry; I have been involved in websites industry since the early years of 1996-97. In my professional career I may have worked for over 10,000+ websites. My Specialty is to build portals or complex online applications.

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