08 Dec Sunshine Coast Industrial Update Nov-2014
The Sunshine Coast Industrial Market is one which continues to slow being generally over-supplied. Development activity across the Sunshine Coast is stagnating with many of the smaller developers having withdrawn from the market.
- Caloundra West and Kunda Park – $175/sqm, – $300/sqm,
- Coolum – $150/sqm – $250/sqm for smaller sites with larger sites (1 ha plus) achieving $100/sqm – $220/sqm.
Strata units have been high in most areas, leading to a decline in rents. Stand alone facilities have been reasonably well sought after in most areas.
Effective rents have fallen with incentives of typically one to two months on a three year lease commonplace in today’s market.
Prime strata face rents
- Warana, Kunda Park and Caloundra, – $110/sqm,
- Coolum – $80-$100/sqm
- Noosaville – $115-$150.
Prime yields ranging from 8.5%-9.5% and secondary yields at 9.5% and above.
There is a considerable supply of industrial land, stand alone and strata titled properties throughout the Sunshine Coast area.
There is limited demand for Industrial investments in this location, unless properties are offered for sale with long term lease terms to National tenants.
Future Value Forecast
Given the overall slowdown and regression of property values on the Sunshine Coast within the last 6 years, we would expect future value trends to be slowly recovering. This would come off the back of an overall stronger residential market and increased confidence.