COOLUM BEACH INDUSTRIAL DEVELOPMENT
Coolum Eco Industrial Park
Development & Market Commentary
With a relatively slow start to the year, the market certainly has some wind in its sails. There is more activity on both the sales and leasing front and the momentum isn’t stopping. The RBA announced a further 25 basis point cut bringing the cash rate down to 3.6% last month. We must remember that we commenced the year at 4.35% and have since welcomed 3 interest rate cuts. We will throw a dart and say it's unlikely we will see another rate cut this year and we will close out the year at 3.6%.
We believe the cut has an almost immediate effect on commercial properties around the sub-$1 million price point, where a higher proportion of buyers rely on finance. We expect this momentum to flow upward, positively impacting $3million+ assets over the next 3-6 months. Above $3 million, the market remains largely cash-driven and somewhat insulated from rate movements, demonstrating that significant liquidity is still present.
If you want to discuss your property in more detail or have any questions following your review of some of the content in this report please contact myself or Cory Hoy below.
FraserMartin
Sales & Leasing Executive
0423 273 438
fraser.martin@raywhite.com
CoryHoy
Sales & Leasing Executive
0421 004 484
cory.hoy@raywhite.com
Coolum Eco Industrial Park
Design and Pricing
Flying off the shelf - 86 Quanda Road
This was our development of choice in the estate. Including 6 high end tenancies positioned on a corner site. It sold very quickly with one buyer purchasing 50% of the stock and I can understand why. Each tenancy included the following;
- Dual roller doors
- Competitively priced at just over $3,000/m2
- High end finishes
- Plenty of windows for natural light
- Functional mezzanines with amenities underneath
Spend Money to Make Money - 248-256 Quanda Road
This development prized itself on high quality finishes, a great design and a significant outlay in marketing. Pricing seemed to undercut all other small strata unit developments in the area making it an easy choice for buyers. Unit sizes range from 92m2 to 270m2. Pricing ranging from $409,000 - $957,000. This complex boasted the following features;
- A caretakers design that is practical yet high quality over 2 levels and tucked into one corner of the warehouse.
- Steel stringers and hardwood treads
- Suspended slab mezzanines (in certain units)
- Amenities underneath mezzanines
Some Important things to note
Some developments in the estate have been slow to sell and this is noticed in the small strata shed range under 150m2. The days of achieving very high $/m2 rates to man shed purchasers seem to be numbered. Some developments are reaching 3yrs on market with under 50% of the development sold.
When building more than 10 units it is important to have some variety in sizing within the complex. It seems to break up the complex and force an element of design into the end product. When building larger units over 350m2 it is important to have 2 roller doors for dual access and ease of operation.
Coolum Eco Industrial Park
Land is Coming
MORE LAND IS COMING
The Coolum Industrial Estate is expanding which is an exciting prospect for the area. There are set to be 10 new lots on the Northern end of the estate which is currently being prepared as we speak. These lots will be coming to market early 2026. The sites are expected to be High Impact Industry allowing users to operate around the clock with sites ranging from 7,000m2 to 24,000m2. We think Quanda Road might need an upgrade to handle the extra use of heavy trucks.
EDQ are hoping to find users with an attractive business case outlining their business and employment as well as showcasing their need for a site. More information around pricing and exact sizing will be released early next year.
DEVELOPMENT APPLICATIONS
Development applications have been few and far between of late. With a recent land sale occurring on Dacmar Road it is expected that this will form another strata unit development.
An interesting DA in place is a Gym and Wellness space on Link Crescent. All things going well, this will be an exciting space for the Coolum Industrial Estate.
UNDER CONSTRUCTION
There are many sites in the estate nearing completion. There is certainly a lot of choice out there for buyers, however prices seem to remain strong.
With much of the stock nearing completion before the end of the year it is expected that buyers will be able to inspect the completed product which should have this stock moving relatively quickly.
STOCK ON MARKET
The numbers to the right are painting the picture around how much choice there is out there for buyers especially when looking under 250m2.
*These numbers may be slightly out with some development stock being consumed by the market, however not updated online.
Coolum Eco Industrial Park Market Data
CASE STUDY
As for development stock we enjoyed some success at 94-98 Quanda Rd recently. Selling units 6 and 9 to owner occupiers and unit 10 to an investor all at asking price and in a short period of 3 months. Since then the leftover 7 units have been put to the leasing market where we are finding a slower uptake. We currently have U10 under offer on a 3*3*3yr lease at asking price.
The leasing market is certainly tougher especially whilst under construction. We believe we will see more success with tenants now that the development is nearing completion.
ABSORPTION
46 Sales from 12 months to July 2024 & 47 Sales to July 2025 0%
51 Leases from 12 months to July 2024 & 51 Leases to July 2025
YoY CAPITAL GROWTH
2.99%
. TRANSACTIONS ACTIVITY 2.1%
SALE
Average $/m2 rate 2023/24 FY = $3,635/m2
Average $/m2 rate 2024/25 FY = $3,744/m2
GROWTH
Absorption is certainly a hot topic. “Are we getting into oversupply”? is an ongoing conversation we have with many owners. Based on our data we have been seeing consistent uptake in warehouses of around 50 per annum. With limited sites likely to go under construction next year we cannot see a picture where oversupply is looking likely.
We believe that consistent year on year growth is here to stay for Coolum. Industrial land is sought after and Coolum offers buyers an attractive price point with quality stock which is very difficult to find in highly sought after suburbs like Noosaville, Warana and Kunda Park . We see Coolum continuing to pick up the overflow out of these areas.
DATA
12 months to July 2025.
