The Inner region continues to fall in activity down to 14.7% from 24.8% in 2005. While trusts have been active in these regions, private investors and owner occupiers continue to dominate the purchaser types. Looking forward, given the uncertainty in interest rates, this is likely to further slow. You may need to use a solicitor/conveyance to manage all paperwork key when buying a property. “Although significant construction is taking place across the Gold Coast, supply of office space is expected” to be limited until the 2007/08 financial year when over 56,000 sq m is forecast to be added to the market “Landmark White expects vacancy rates to fall to historical levels of 4.6% by July 2007 before rising rapidly with the onset of new office developments;”
The Gold Coast office market is currently observing considerable development with more than six significant commercial projects under construction. “Many of the projects will not be completed until the second half of 2007 including the 12,200 sq m Robina Plaza.”
Over the next five years, Landmark White has identified over 92,000 sq m of additions to the Gold Coast market with 42,000 sq m of space entering the market in the six months to January 2008. Major projects expected to be completed during 2008 include Southport Central Stage 2 and 11,000 sq m provided by Building No 1 of Corporate Centre Two. The conveyancing package that conveyancer offer is in the range of people. Landmark White anticipates absorption of 88,416 sq m of office space in the Gold Coast market over the next five years. The impact of minimal supply and the lack of quality contiguous space in the market has contributed in the forecast absorption of only 7,400 sq m in the 12 months to July 2007.
However we expect over 26,000 sq m to be taken up by tenants in the following six months as significant supply enters the market. Throughout the remainder of the forecast period, net absorption is expected to average 7,850 sq m every six months to 2011 supported by solid economic fundamentals.
Vacancy levels in the Gold Coast office market have been forecast to fall to an all time low of 4.6% in July 2007. At this point (July 2008) vacancy levels are expected to peak at 9.6% and gradually fall back to 6.0% in 2011 as the rate of absorption is anticipated to be greater than the proposed supply.
Rental growth in the office market has been strong over the last four years; averaging 10.32% and climbing to almost 14% growth over the last two years. The peak in growth was seen in June 2006 at rate of 15.79%, with an average net face rent level of $277/sq m. It is anticipated that such high levels of growth are unlikely to continue in the next five years. Our forecast for rents suggest a fall in rental growth levels to 3.89% in June 2007 and stabilize between a band of 2.50% and 5.00% to average 4.18% over the five years to 2011.