Gold Coast retail property stabilised over first half of 2013: Herron Todd White

After a tough five years, conditions in the Gold Coast retail property market appear to have stabilised during the first half of 2013, according to Herron Todd White.

There now appears to be a general perception that the market has bottomed.

The property valuation group says it is evident that there was further softening of the market in 2012, in line with a soft local economy and high unemployment, coupled with the adverse impact brought on by reduced tourist numbers and infrastructure upgrades.

‘’The mindset of many buyers in today’s market has shifted on the back of low interest rates and a more competitive finance environment.

‘’Most importantly, however, feedback from local marketing agents indicates that the interest from international investors is also increasing, which is further expanding the pool of potential buyers.

‘’Such parties are canvassing the market and appear to be taking preference towards sites within recognised retail precincts, such as Broadbeach, Surfers Paradise and Southport.’’

Herron Todd White says other beachside areas, such as Burleigh Heads and Coolangatta, are still looked upon favourably by local investors, however, the prospect of any ‘blue sky’ does not ‘’weigh heavily on the purchase decision’’.

Some notable retail transactions over the course of this year include:

• Market Square, Varsity Lakes – reportedly settled in recent weeks, achieving a sale price of around $6 million.

• Pinnacle Pines, Pacific Pines – This McDonald’s and 7-Eleven anchored convenience centre was placed under contract last year, but only emerged as a confirmed sale for $13 million in recent weeks.

• Bronberg Plaza, Southport - This 7-Eleven and IGA anchored convenience centre is reportedly in the final stages of negotiation and is set to be another example of the Gold Coast’s improving retail market.