Opportunities for smaller investors with Noosa shops and suites from $800,000 to $2 million

Opportunities for smaller investors with Noosa shops and suites from $800,000 to $2 million
Opportunities for smaller investors with Noosa shops and suites from $800,000 to $2 million

Self-managed super funds and smaller commercial investors punting on a recovery in the Noosa property market could have an opportunity, with a number of shops on the Noosa retail strip listed for sale around the $2 million mark and under in a market that has been dormant for the past two years.

Currently tenanted, the retail properties are offering yields of around 7% and 8% with the potential for capital gains should the market start improving.

The heavily tourism-dependent Sunshine Coast and Gold Coast markets have struggled in the last few years, having not received the flow-on benefits of the mining boom and have been hurt by the high Australian dollar.

However, Paul Butler, director of Ray White Commercial Noosa, says he is seeing an increase in confidence from buyers for properties with good lease covenants.

“Super funds are becoming particularly active as buyers look for stable returns outside of the stock market,” Butler tells Property Observer.

“Retail leasing is gaining some momentum again after a prolonged period of limited activity,” he adds.

Butler says food outlets and coffee shops have been the strong achievers in the current market.

Last month, Colliers International agents Nick Dowling and Brad Moore marketed 27/40 Hastings Street, with 65 square metres of retail space with an additional exclusive-use outdoor area of 51 square metres, currently occupied by fashion store Venetian Laundry. RP Data records show it sold for $1.57 million.

Dowling says that while there are a number of assets on the market in Hastings Street at present, retail sales activity on the strip had been non-existent for at least the past two years.

“Hastings Street is the epicentre of the world renowned Noosa Heads and comprises a mix-use environment primarily made up of three-storey resorts with ground floor retail tenancies,” he says.

Other recent sales on Hastings Street include a mixed-use development at 11 Hastings Street measuring 949 square metres, incorporating La Vida restaurant on the ground floor and guest accommodation and office spaces on the second floor, which sold for $10.8 million in July. Office space from 66 square metres to 167 square metres is available for lease at 11 Hastings Street at $450 per square metre.

Further down Hastings Street at number 18, a medical suite measuring 58 square metres changed hands for $370,000. It las sold for $561,000 in January 2005.



In April last year a 50-square-metre shop at 14 Sunshine Beach Road at Noosa Heads sold for $270,000 on a yield of around 8%.

On the high-end shopping strip of Hastings Street at Noosa Heads shop five in the French Quarter mixed-used precinct at 62 Hastings Street (pictured below) is up for sale by private treaty with an asking price of $1.65 million.

The shop generates rental income of around $115,900 per annum – a yield of around 7%.

It is currently tenanted by retailer Poeta – incorporating the businesses of Gordon Herford master jeweller and the artistic works of Belinda Herford – on a new five-year lease until 2016.

Other retailers in the “The French Quarter” include Quicksilver Surfwear and Tom Offermann Real Estate.

The property is being sold by Tracey Ryan and Paul Forrest from Ray White Commercial Noosa.

A cheaper investment with exposure to Noosa shoppers is three-level strata building on Thomas Street in Noosaville (pictured below), including the premises of take-away joint Burger Bar, which is listed for sale with a price tag of $775,000.

The two-storey unit is situated within the “The Islander Resort” a low-rise holiday unit complex comprising 51 residential apartments and 15 retail shops with two street frontages to Gympie Terrace and Thomas Street at Noosaville.

According to the investor memorandum, Thomas Street is regarded as one of the prime “eat streets” locations in Noosaville and services the surrounding residential and tourist resorts.

The shop measures 39 square metres, with the property currently bringing in gross income of around $55,000, translating into a yield of around 7%.

Above the shop is a two-level, two-bedroom apartment.

The owner has the opportunity to receive dual incomes form both the residential and commercial aspects of the property.

The shop is up for sale by private treaty and is being sold by David Brinkley, a commercial property consultant  from Ray White Commercial Noosa.

Also in Noosaville, Paul Butler and Paul Forrest from Ray Commercial Noosa are selling a 340-square-metre first-floor medical/ professional suite with lift access on Gibson Road by private treaty (pictured below).

The property adjoins 24-hour gym Jetts Fitness and has an asking price of $1.16 million.

It is currently tenanted until April 2013 with a five-year renewal option returning rent of $93,500 per annum and representing a net yield of around 8%.

According to the investment report, the strata office is in an area that “has in the past experienced strong capital growth”.

The strata office is opposite the Noosa Village Shopping Centre and within the Gibson Road retail precinct, which is home to Harvey Norman and various homeware and electrical retailers.

Other retail assets for sale nearby include a bar/bistro and three shops on one title include this property on Duke Street, with strong leasing already in place.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer


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