The COVID-19 pandemic has not stopped strong sales and leasing of commercial bayside properties as a Ray White report shows the company had a record breaking year.
All property types went well, with a particularly strong market for sub-$5 million assets and fully tenanted investments.
More than $116 million worth of commercial property was sold, a 10.81 per cent increase on the year before.
Ray White Commercial Bayside director Nathan Moore said the results showed how well the region performed during a turbulent year.
"Fuelled by low interest rates and diversification, we've seen a dramatic increase in demand for quality commercial assets," Mr Moore said.
"After a slow start to the financial year, we quickly saw a rise in turnover and capital values, with new yield benchmarks set for investors and huge improvement in the rental market," he said.
Industrial sales are the most active asset class in the bayside, with an average sale price of $840,000.
"The price point of industrial is attractive to cashed-up buyers, wanting to take advantage of improved lending conditions," Mr Moore said.
"We have had a huge turnover of industrial stock in Capalaba, with most transactions coming in under the $1 million price point."
Mr Moore said the market had bounced back significantly despite uncertainties in the retail and office sectors after COVID-19, and buyer appetites had increased.
Retail stock sold for an average of $1.24 million, and office stock an average of $901,000.
The Wynnum and Manly areas have also seen an increase in sale activity by 12.63 per cent on the year before.
"This region is dominated by retail sales including showroom facilities, with yields as low as 1.5 per cent for assets which are not fully tenanted, as buyers look to the potential returns of up to 7 per cent when fully occupied," Mr Moore said.
"After a particularly devastating year for small business, we are really pleased that vacancies across the region still remain low," Mr Moore said.
It comes on the back of a red hot residential and rental market fuelled by 30,000 people moving to Queensland in just a year and others returning home from overseas due to COVID-19 fears.
Emily Lowe
Redland City Bulletin journalist covering community, politics, crime and human interest stories. Griffith University Alumni.
Redland City Bulletin journalist covering community, politics, crime and human interest stories. Griffith University Alumni.
