NORTHERN CORRIDOR COMMERCIAL
PROPERTY WRAP FOR 2020
2020
TENANTED INVESTMENTS Ray White Commercial Northern Corridor Group
TENANTED INVESTMENT MARKET 2020 The tenanted investment market has been particularly robust as people search for safe havens for their money in the short to medium term. Many owners capitalised on this demand and sold to either estate plan, reduce debt or simply invest back in their quality of life. “Life’s too short to drink cheap wine” was the justification for one seller, who had just taken possession of his new Land Cruiser and caravan.
TENANTED INVESTMENT SALES Sales
52
Value
$79,762,538
Average Yield
6.86%
Investor Enquiries 635
2020 AVERAGE YEILD % PER QUARTER 8.5% 8.0% 7.5%
7.68 7.23
7.16 6.89
7.0% 6.5% 6.0%
6.14 Q1 2020
Q2 2020
Q3 2020
Q4 2020
UNDER CONTRACT 2021
WHAT TO EXPECT IN 2021 The supply of quality investment properties will be tight and competition will be fierce. Tenant demand remains strong, as does the residential housing market and domestic migration predictions, so vacancy risk for quality buildings will be minimal. With the appetite in the market and investors’ access to cheap money, supply will be the only thing standing in the way of 2021 breaking records for the sheer volume of property sales in our region. 2021 provides commercial property owners with the perfect opportunity to liquidate under performing assets or to exit partnerships that are no longer mutually beneficial.
Ray White Commercial Northern Corridor Group
“2020 WASN’T THAT BAD... THERE, I SAID IT!” This was one of our favourite quotes from a client that closed out 2020 because it reflected the reluctant attitude of many investors, property owners and even business owners to celebrate the wins for the year. We have often heard an apologetic tone from them when discussing their successes because we are all aware that there is real hurt in the world. Our concern is this may be diluting a message of true strength and recovery in the business and property markets across the Northern Corridor. As always when in doubt, we look to the numbers.
Inspections
ons
Enquiry
sacti n a r T
ENQUIRY 3,275 INSPECTIONS 2,437 OFFERS 1,616 TRANSACTIONS 374
- Ashley Rees
Off er s
101 SALES worth over $100,000,000
273 leases with $10,759,149 of annual rent secured for our owners
SUBURB
BUILD SIZE
TRANSACTION PRICE
PRICE /M2
YIELD
Yandina
109
$390,000
$3,578
9.83%
Samford Village
100
$640,000
$6,400
6.70%
Coolum Beach
88
$180,000
$2,045
6.75%
North Lakes
41
$200,000
$4,878
7.69%
Strathpine
138
$314,000
$2,275
7.02%
Warana
143
$280,000
$1,952
6.15%
Maroochydore Clontarf Caboolture
202
$425,000
$2,104
6.49%
1122
$1,600,000
$1,426
7.18%
800
$1,200,000
$1,500
7.69%
Landsborough
NA
$1,100,000
NA
9.45%
Deception Bay
292
$465,000
$1,592
7.53%
Morayfield
352
$2,600,000
$7,386
6.54%
Nambour
350
$475,000
$1,357
6.32%
Caboolture
165
$365,000
$2,212
6.79%
North Lakes
7971
$21,500,000
$2,697
8.05%
Sippy Downs
107
$420,000
$3,925
6.95%
Caboolture
498
$850,000
$1,707
6.58%
Coolum Beach
223
$400,000
$1,794
7.00%
NA
$1,450,000
NA
6.78%
138
$250,000
$1,812
8.00%
Lawnton Coolum Beach Maroochydore
25
$160,000
$6,400
8.13%
1288
$2,400,000
$1,863
6.00%
Maroochydore
79
$400,000
$5,063
7.52%
Strathpine
65
$209,000
$3,215
8.61%
Burpengary
Coolum Beach
1319
$1,980,000
$1,501
7.67%
Forest Glen
473
$910,000
$1,924
6.81%
Maroochydore
108
$660,000
$6,111
6.20%
Milton
275
$850,000
$3,091
8.30%
Kunda Park
1194
$1,750,000
$1,466
7.40%
Warana
367
$1,650,000
$4,496
6.00%
Yandina
1670
$2,000,000
$1,198
9.15%
Caboolture
1654
$2,125,000
$1,285
9.46%
Mudjimba
930
$4,000,000
$4,301
6.52%
Clontarf
248
$610,000
$2,460
3.40%
Buderim
226
$855,000
$3,783
6.20%
Morayfield
251
$430,000
$1,713
5.58%
Bellmere
728
$2,075,000
$2,850
6.46%
Burpengary
1552
$1,670,000
$1,076
6.54%
North Lakes
383
$1,350,000
$3,525
7.01%
North Lakes
236
$653,538
$2,769
6.50%
North Lakes
200
$624,000
$3,120
6.25%
Bray Park
1026
$4,100,000
$3,996
6.00%
Deception Bay
1098
$3,500,000
$3,188
5.43%
Baringa
317
$625,000
$1,972
6.59%
Baringa
293
$740,000
$2,526
6.73%
Buderim
51
$200,000
$3,922
5.50%
Bells Creek
306
$620,000
$2,026
4.93%
Baringa
220
$467,000
$2,123
6.35%
Buderim
324
$425,000
$1,404
8.23%
Baringa
242
$470,000
$1,942
6.38%
1772
$5,800,000
$3,273
4.78%
129
$350,000
$2,713
4.57%
Maroochydore Nambour
HOW CAN YOU CAPITALISE ON THIS HOT MARKET? Your team at Ray White Northern Corridor Group has prepared a Commercial Sales Roadmap to help you make confident, informed decisions at every step of the journey. The first step on the Roadmap is to establish whether selling your property is actually the right thing for you to do at this time. The following questions will help you determine this more clearly:
Does the property still align with your investment and lifestyle goals? Do you have better things you could be doing with the money in the next two years? Is the property impacting your peace of mind or partner relationships in any way? Do you feel the property is at its peak and the current market is too good of an opportunity to pass up? Are there maintenance or tenant issues on the horizon that you would rather avoid? We have helped hundreds of owners just like you to avoid the pitfalls and maximise opportunities to achieve their investment goals, and we are excited to guide you to the same result. Call today for your no obligation appraisal.
Ray White Commercial Northern Corridor Group