There have been some outstanding results achieved across the Yatala region over the last six months, according to Ray White Commercial’s latest Between the Lines* research.
The report covered the Yatala Industrial region being the grouping of suburbs in north Gold Coast including Yatala, Ormeau, Beenleigh, Stapylton, and Upper Coomera, these all form part of the Yatala Enterprise Area.
“Late in 2020 and into 2021 we’ve seen a vast rebound in activity across both the sales and leasing market with a swift change in sentiment felt,” said Ray White Commercial Head of Research Vanessa Rader.
“The stringent border controls of Queensland during the COVID-19 pandemic have done much to swing interstate migration back in the state’s favour which creates new opportunities for small business and the local economy.
“While the uplift is encouraging, fundamentals need to continue to be considered, with supply needing to be demand-driven while improvements in values and rents to be at market-sustaining levels.”
“In 2020, we saw limited new supply enter the market with some projects deferred or put on hold, but into this year we’ve seen activity levels rebound and many projects have advanced through planning phases,” said Ray White Industrial M1 North Sales and Leasing Consultant Lisa Dunne.
“The major project currently under construction is the Pacific Optics facility at Yatala Central, the warehouse at Bluestone Court will be 9,107sq m and include a half-court basketball court, due for completion in August.
“The run to the end of 2020 showed remarkable results, with volumes highest over the second half of 2020, well in excess of our historical results recorded at $99.79 million.
“While this was aided by the cold storage facility transaction at 1 Lahrs Road, in Ormeau for $43 million by listed REIT Centuria, there were a further 47 transactions during this period.
“This result highlighted the strong demand for smaller industrial stock, with the average sale price (excluding this larger sale) of $1.2 million, ripe for both the owner-occupier and private investment market, taking advantage of the current low interest rate environment.
“The leasing market had a mixed 2020 period with COVID-19 shutting the doors of many businesses as mandatory lockdowns pressured business operations and market occupancy levels.
“We saw limited new leasing activity in the first half of 2020 resulting in average rental rates reducing to $117psqm, fortunately, strong border controls which kept Queensland infection rates limited and rather rapid return to work kept some vibrancy across the Industrial markets.”