Noosa the place to be for commercial investment

40 Hastings Street, Lot 27, Noosa.

A FEDERAL ELECTION victory for the LNP, interest rate cuts and confidence flooding back into the market is the perfect investment tonic for commercial assets, and affluent Noosa on the Sunshine Coast should be top of people’s lists in Queensland.

“I think at this point of the property cycle people are looking for security and there’s no doubt that Noosa offers that in a couple of ways,” said Ray White Commercial Noosa and Sunshine Coast North Director Paul Butler.

“Depending on location and asset type, given the smaller market in Noosa, there’s generally a higher demand-to-supply ratio.

“This means investors feel more secure knowing that there’ll never be endless amounts of that type of stock available, and that also translates into a higher liquidity factor, if it’s time to sell.

“The strict control around Noosa with the Town Plan also means over supply of stock is less likely to be an issue at any point in time. Also, as the cost of development increases, this increases the value of existing stock.”

Mr Butler said the amount of stock accessible to the market right now was constricted, particularly when it came to investment grade stock.

“Most recent transactions have been off-market, with three sales in Hastings Street for a combined price of $8.8M, in addition to some on-market transactions around $2M each,” he said.

“A high volume of sub $1M stock has been sold to both owner occupiers and investors.

28 Hastings Street in Noosa.

“Industrial has been the flavour of the month, particularly small sheds, which are hitting some very strong price points from $2,400 to $3,000psqm.”

Mr Butler said people should be looking for anything with a bit of rarity, and Noosa offered that quality in abundance with a lot of its properties.

“Noosa Junction has been a big hit with the new plan to allow mixed-use developments, with Stockwell repurchasing Noosa Civic, and land being available for sale shortly,” he said.

“These blocks will also allow a mixed-use development and will be well received by businesses in town looking for larger spaces to operate from.

“Noosa Junction has been particularly active with 5 Sunshine Beach Road (the ex KFC) recently selling for $1.915M and now has a new 10-year lease to Ze Pickle at a very strong rent.

“Around Noosaville, lots of small industrial units are selling with prices ranging from $2,400 to $3,000psqm, depending on the quality and position.

“Hastings Street has been a standout. Peter Alexander sold on a five per cent yield at $6.9M to a local investor. This is the strongest yield recorded in Hastings Street for a freehold property post-GFC.

“Three other properties have sold recently or are under contract at between $2M and $4.5M with yields in the low five per cent range.

“So, for investors and from a commercial property point of view, the smart money is in Noosa now and for the foreseeable future.”

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