McGees Wrap Up 25th of July 2025

Market Overview

Queensland’s commercial property market continues demonstrating strength and resilience. Institutional and private capital remain active in retail, industrial, large-format retail, and development sectors. However, rising council charges and proposed superannuation policy changes are beginning to influence investor sentiment.

This Week’s Highlights

Industrial & Logistics

59 Corymbia Place, Parkinson

· Buyer: Private Gold Coast investor

· Sale Price: $10.7 million

· Details:
7115 m² site with 3508 m² tilt-panel building. Fully leased to national tenants. Off-market deal with a 66% gain since 2020. Yield: 4.89%; WALE: 3.8 years.

Retail & Large Format Retail (LFR)

Westfield Chermside

· Buyer: Dexus Wholesale Shopping Centre Fund

· Sale Price: $683 million for a 25% stake

· Details:
Off-market JV deal as part of Scentre Group’s capital-recycling strategy. Westfield Chermside is Australia’s second-largest shopping centre.

1 Gateway Drive, Noosaville (Sunshine Coast)

· Buyer: Private Brisbane‑based family

· Sale Price: $20.15 million

· Details:
4446 m² LFR (large format retail) centre, fully leased. Anchored by Officeworks and Club Lime. Sold pre-campaign at a 5.75% yield; WALE: 1.4 years.

General News

E‑Commerce Driving Industrial Demand

· CBRE: Online retail sales hit 14.3% penetration in May 2025.

· Projected to reach 17% by 2029.

· Forecast: 1.7–1.8 million m² of extra logistics space needed in Australia over the next five years.

SMSF Tax Proposal Sparks Concern

· Federal proposal: 15% tax on unrealised capital gains in SMSFs above $3 million.

· Risks: Asset sales during downturns; generational succession at risk.

· Farmers and small business owners most affected.

· Strong opposition from The Nationals.

SEQ Council Rates Comparison

Annual Charges – SEQ Councils (2025–26)

Source Kerr, J. (2025, July 21) Courier Mail

*Waste cost included in general charges for Sunshine Coast.

1. Redland Most Expensive

• Redland tops the list with the highest total household bill at $4,931, driven by the second-highest general rates, most expensive waste service ($650), and high sewerage charges.

• The cost reflects unique service pressures, including island community access and extensive coastline maintenance.

2. Toowoomba’s Water Burden

• Toowoomba stands out with the highest general rates ($1,702) and by far the highest water cost ($1,380)—due to not participating in SEQ bulk water schemes.

• Despite lower waste and sewerage fees, water costs heavily inflate the total.

3. Somerset Remains Most Affordable

• Somerset is the most affordable at $3,368, over $1,500 less than Redland.

• Achieves this through low general rates, waste, and sewerage fees, plus a reduced emergency levy.

4. Brisbane & Ipswich: Cost-Controlled Urban Councils

• Both Brisbane ($4,007) and Ipswich ($4,028) offer strong urban services at below-average costs.

• Brisbane benefits from scale efficiencies, while Ipswich maintains modest waste and council charges.

5. High “Other” Charges Skew Scenic Rim

• Scenic Rim’s relatively high total cost is driven more by “other council charges” (e.g., infrastructure levies) than core utilities.

• Still maintains mid-range waste, sewerage, and water fees.

6. Moreton Bay & Logan Reflect Growth Pressure

• Logan and Moreton Bay show above-average costs due to infrastructure expansion needs, particularly in sewerage and rates.

• These areas are among the fastest-growing in Queensland.

7. Green Bin Charges & Water Delivery Variances

• Sunshine Coast and Noosa include mandatory green bin services, subtly raising their totals.

• Minor variations in retail water charges (e.g., Gold Coast’s $570) also reflect operational models across councils.

Final Take

This week’s transactions reaffirm the ongoing strength of Queensland’s core property markets. Investor appetite for retail and industrial assets remains strong. However, policy shifts—particularly in superannuation and council charges—are beginning to influence both commercial strategy and household affordability.

References (APA Style)

Dorrington, B. (2025, July 24). Online retail boom to fuel new demand for logistics space. The Australian. Nationwide News Pty Ltd.

Herde, C. (2025, July 21). Location seals the deal. The Courier‑Mail, p. 65.

Herde, C. (2025, July 21). Brisbane family snaps up Sunny Coast retail centre. The Courier‑Mail, p. 67.

Kerr, J. (2025, July 21). Winners, losers: SEQ’s most expensive, cheapest councils exposed. The Courier‑Mail (Online).

· Kenaghan, N. (2025, July 24). Westfield owner sells $683m stake in Brisbane mall. The Australian Financial Review, Property section.

Littleproud, D. (2025, July 21). Labor’s plan for this term is a frightening one. The Courier‑Mail, p. 21.

· Kwan, C. (2025, July 21). Gold Coast project up for sale after loan defaults. The Australian Financial Review, p. 32.

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

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