Coolum Beach Industrial Market Report

Coolum Beach Industrial property market report 2018-2023

By Cory Hoy Ray White Commercial Northern Corridor Group

raywhitecommercialncg.com.au

0.8%

*

HISTORICALLY LOW VACANCY RATES

Coolum Industrial market in a nutshell Coolum Beach’s strategic location near major highways and the Sunshine Coast Airport has made it a thriving business hub with strong logistics.

The area’s rapid population growth is driving sustained economic activity. Industrial properties in Coolum are in high demand, supported by historically low vacancy rates across the country.

Limited land for new developments is boosting prices and fostering capital growth.

The market remained stable during 2018-2020 and surged in 2021 due to high demand. 2022 saw rising prices and 5% yields. Interest rate hikes caused a rare price drop in late 2022, but prices remained higher than in 2021.

Coolum’s Industrial property market is poised for growth, especially in vacant possession properties. Tenanted investments are slower due to higher rates. Many new investors are buying and holding tenanted properties with the goal of holding them for 5+ years, while vacant properties are in short supply, driving prices up.

If you would like additional data specific to your property or would like to know the 2023 value of your property, please reach out on 0421 004 484.

Cory Hoy

Sales & Marketing Executive

0421 004 484 cory.hoy@raywhite.com

* Approximate vacancy rates for industrial properties across Australia

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Coolum Beach Market Snapshot

2018 - 2020 Consistent volume of sales with modest price increases on previous years.

2021 Huge demand and supply increases saw volume of sales double with prices remaining relatively stable.

2022 Prices began to surge in 2022, driven by still low interest rates, high demand and lower supply. Price increases for existing properties were seen mainly in strata under 150m2 and over 300m2. Land prices doubled with dwindling supply and increased demand.

2023 (to June) Prices continue to surge from late 2022 for vacant possession properties, with tenanted investments slower to catch up due to increasing interest rates. This is gradually being offset by rental returns increasing yearly in line with CPI.

By far the largest volume of transactions across the period has come from the Quanda Road Industrial Estate. We have also included sales from the other Industrial zoned areas of Greenoaks Drive and Corbould Road. If you would like to see the data specific to any of these areas, please reach out.

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SHOW ME THE NUMBERS!

The sales data is broken down into subcategories:

Strata under 150m2 | Strata 150-300m2 | Strata over 300m2 | Freehold properties | Land

Land 106 transactions 23%

Freehold 23 transactions

5%

300m + strata

7%

2

33 transactions

150-300m2 strata 134 transactions

463 INDUSTRIAL PROPERTIES

36%

<150m2 strata 167 transactions

SOLD 2018-2023 (June)

29%

Greenoaks Drive

Corbould Road

10 transactions

8 transactions 1.5% 1.5%

NUMBER OF SALES BY NEIGHBOURHOOD 2018-2023 (June)

87%

Quanda Road Industrial Estate 446 transactions

Number of transactions

<150m2 Strata: Yearly transactions & average $m2 trend $5,000

Average Price /m2

60

60

$4,452

$4,000 $3,168 $3,000

40

$2,635 $2,125 29

$2,061

30

$2,197

$2,000 20

20

18 $1,000

10 $0

2018

2019

2020

2021

2022

2023 (to June)

$0

Strata <150m2: Despite a brief downturn 2021, the smaller sheds have continued to rise in price on the back of constrained supply since mid 2022.

Number of transactions

Strata 150m2 to 300m2: Yearly transactions & average $m2 trend

Average Price /m2

$4,000

$3,612

47

50

40 $3,000 34

$2,000

$1,885

$2,037

$2,184 $2,025

30

$2,122

20 18 $1,000

$0

13

12

2018

2019

10

2020

2021

2022

2023 (to June)

Strata 150m2 to 300m2: Prices were flat for much of 2018-2022 with a surge in late 2022 on the back of high demand and lower supply. 2023 is on track for record high prices.

10

$0

Number of transactions

Strata >300m2: Yearly transactions & average $m2 trend

Average Price /m2

$4,000

15 $3.417 13

$3,000 $2,490

10

10

$1,838

$2,000 $1,523

$1,533

$1,575 5

$1,000 3

$0

3

3 1

2018

2019

2020

2021

2022

2023 (to June)

$0

Strata >300m2: These sheds are always in high demand from buyers and are tightly held by owners.

Growth is set to continue beyond 2023 with low supply.

Number of transactions

Freehold properties: Yearly transactions & average $m2 trend

Average Price /m2

$2,000

8 $1,685

7 $1,500

$1,000

6

6 $1,185 $946

4 $614

$992 4

$648 3

$500

2

2 1

$0

2018

2019

2020

2021

2022

2023 (to June)

Freehold properties: It’s too soon to say if 2023 will reach new highs, as these properties rarely come to market.

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$0

Number of transactions

Industrial Land: Yearly transactions & average $m2 trend

Average Price /m2

$600

30

$541

$536 27 23

23

$400

20

$243

$231

$253

$247

12

$200

11

10

$0

2018

2019

2020

2021

2022

10

2023 (to June)

$0

Industrial Land: With most available lots now allocated, we expect to see a drop in new land coming to market in 2024, supporting continued record high prices in the short to medium term.

Australian Industrial Market by the Numbers Australian Industrial shows the best return results

Capital Return

% annual change

Income Return

20%

2006

2008

2010

2021

2014

2016

2018

2020

2022

THE AUSTRALIAN INDUSTRIAL MARKET BY THE NUMBERS CONTINUED

Industrial yields start to increase NSW & VIC trend below National average (%)

COOLUM BEACH IS ONE OF THE SUNSHINE COAST’S MOST SOUGHT-AFTER INDUSTRIAL LOCATIONS Whether you're looking to buy or sell an industrial property in this exciting suburb, our team of dedicated commercial agents is here to assist you every step of the way.

Contact us today for a free appraisal on your Coolum Beach property or to have a chat about the Coolum Beach market and how we can help.

Cory Hoy 0421 004 484 cory.hoy@raywhite.com

raywhitecommercialncg.com

Coolum Beach Industrial property market report 2018-2023

By Cory Hoy Ray White Commercial Northern Corridor Group

raywhitecommercialncg.com.au