Sunshine Coast industrial market continues strengthening: HTW Industrial

Sunshine Coast industrial market continues strengthening: HTW Industrial
Sunshine Coast industrial market continues strengthening: HTW Industrial

The Sunshine Coast industrial market continued to strengthen during 2019, accotding to the latest report from valuation firm Herron Todd White.

They found that while there have been very few highprofile sales settled to date, underlying fundamentals continue to improve. We have seen further land developed in the Aura estate south of Caloundra with land prices of $250 to $300 per square metre generally being achieved.

The majority of larger sheds being constructed in this area are to be owner-occupied with strata development seeing values in the $2,000-plus per square metre range.

The lack of further land development in the Kawana and Kunda Park precincts is driving rental levels higher.

The HTW valuers said, "some recent rentals that we are aware of include a circa 1,500 square metre modern shed at $135 per square metre gross per annum and a circa 2,600 square metre modern shed at $131 per square metre gross per annum."

"This shows general rental growth of circa 15 per cent over the past threeyear period for similar quality product."

"Rentals are also increasing for smaller strata titled holdings with recent achieved rents in the $150 to $180 per square metre gross per annum range across the Sunshine Coast."

"Yields are generally in the 5.5 to seven per cent range for smaller strata stock which appeals primarily to owner- occupiers."

"These returns are not attractive to investors generally, though owneroccupiers are seeing this as a good alternative to leasing given lending rates are typically sub-five per cent across the market," they concluded.

Tags: 
Industrial Sunshine Coast

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