Commercial property reaps the rewards from renewed confidence

Major infrastructure projects, including the $2billion University hospital at Kawana, are having a significant impact on the Sunshine Coast’s property market.

Underpinning the renewed market confidence is improving property yields and historically low interest rates.

Cheap borrowing conditions meant some tenants were able to purchase a premises for less than what it cost to service a mortgage.

“This is a great time for consolidation,” Luxe Commercial managing director Chris Sales said.

“This is by no means a boom, however there’s an uptick in buyer confidence and vendors who have realistic price expectations are achieving great results.

“If you do your sums and have a 20% deposit, tenants can finally afford to buy a premises rather than rent and for many businesses that’s a huge step towards securing their future that they might not have previously thought was possible.”

The Sunshine Coast’s property market relies heavily on tourism, which has a serious impact on unemployment rates, spending habits and consumer confidence.

The uptake of office space by tenants upgrading or expanding and strong sales for industrial property was an encouraging sign that market conditions were improving.

Mr Sales said the retail market was still the weakest of the three for commercial property, with conditionals offers, discounts and incentives still required to secure long-term tenants.

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