Blog

May 17, 2018

Commonwealth Games and Commercial Property

South-East Queensland is getting back to normal after the recent Commonwealth Games and the commercial property, residential property and development sectors are looking positive.

With the infrastructure upgrades around Brisbane and the Gold Coast and a great deal of money spent on transport upgrades between the two cities, the apartment sector is looking good, retail is on its way up and office space is recovering from a below average run.

Just a short time ago, the Gold Coast featured the emptiest office buildings in the country, however, office vacancy levels are dropping into single digits for the first time in 10 years.

The South East Queensland office market, in general, has been inundated by a mass oversupply in the decade since the GFC took its toll.

In the south-east, there has been a huge quantity of new office space being built, and with the Games now over, the mixed-use space that is planned for the Games village precinct will expand an already over-saturated market. The slump, however, is beginning to recover and will continue to improve however painfully slow it may be.

Continual population growth in the region combined with the Games-related infrastructure investment has now boosted demand for office space, and with restricted new supply, the steady drop of vacancy levels continues.

2018 has started very strong and the SEQ economy is on an upturn with solid residential growth, infrastructure progress, tourism and the Commonwealth Games inserting money and confidence into the region.

It is likely that the not too distant future will bring substantial commercial growth to the northern end of the Gold Coast where it meets the Southern suburbs of Brisbane, creating an easily accessible office space market for both rapidly growing cities. The land is cheaper, and access is viable for transport, logistics and technology and developers are clueing onto this quickly.