2021 saw a year of success for the Kollosche Commercial team with a collective $192,000,000 in sales recorded. This red hot year was fuelled by robust interstate migration and steady population growth that is continuing to drive the market into 2022 and what we predict to be another successful year in commercial real estate.
Despite a very low occupancy during the last 12 -18 months in accommodation and tourism, we are now receiving high interest from developers looking for key development sites to use as short term accommodation providers.
This gives us a strong indication of their confidence for the Gold Coast market coming into 2022 and identifying the current lack of quality high-end accommodation.
Other factors driving the market this year include higher population growth, with projections from the consulting firm Urbis stating that the Gold Coast would be home to 812,000 people by the time Queensland hosts the 2032 Olympic Games.
This steady population increase will cause a positive run on effect for other areas of commercial real estate, such as increasing demand for childcare centres, neighbourhood retail and industrial precincts.
A growing pool of cash-rich investors that have benefited from the liquidity and growth of the residential market are looking for both tenanted and vacant investments between $1,000,000 to $3,000,000 to repurpose, the demand propelled by easier entry into this asset class with more investors having access to a 30 to 40 percent deposit off the back of the strong residential market performance and growth.
Growing demand for freehold, multi-tenanted assets from investors due to the shift in consumer behaviour throughout the series of lockdowns has also seen the commercial market flourish.
New developments such as stage three of the Gold Coast Light Rail will also positively impact the industry, with development sites along the Gold Coast highway between Broadbeach and Burleigh becoming highly desirable to investors.
These driving forces for the market are indicators that 2022 will be another year of strength for Commercial Real Estate.
If you would like to have an informed discussion around how to best leverage your commercial asset in 2022, get in touch with our Commercial sales, property management or leasing experts today.
