Kunda Park avoids Sunshine Coast industrial glut
Kunda Park is proving its credentials as one of the Sunshine Coast’s standout areas for industrial property, shaking off the pressures of oversupply seen in other parts of the coast.
According to a recent review of the industrial market by Herron Todd White, areas such as Bells Creek West in Caloundra, Coolum, Yandina and Noosaville are suffering from vacant land oversupply, which is holding back industrial property values.
But the property valuation and advisory group says the more established areas of Kunda Park, Caloundra and Kawana have improved overall value levels over the last 12 months, with property in these areas more tightly held.
“The lack of overall supply has seen some improvement in net rental rates across the Kunda Park, Kawana and Caloundra West precincts and this is likely to continue in 2016,” the report says.
“We have seen yields improve by up to 75 basis points over the past 12 months for good quality holdings with strong lease covenants in place.”
“Yields for good quality holdings with strong lease covenants and in the sub-$3 million range are now circa 8% to 8.75% depending on location.”
Savills Sunshine Coast director of sales and leasing Jason O’Meara agrees.
The Kunda Park industrial property has 1279sqm of lettable area on the ground floor.
“(We are) witnessing strong pent-up demand from investors looking for quality properties in well-established and highly sought-after business locations such as Kunda Park, which continues to perform extremely well,” O’Meara says.
The statements come as a fully leased, standalone industrial property at 33 Page St in Kunda Park has been placed on the market.
The property boasts 1279sqm of lettable area on the ground floor, including a warehouse, reception and showroom area, with mezzanine executive offices, a boardroom, toilet and kitchen above the showroom.
(We are) witnessing strong pent-up demand from investors looking for quality properties in well-established and highly sought-after business locations
While currently fully leased to One Stop Kitchen Shop/One Stop Joinery Qld, which has a three-year lease to June 2017 with two further three-year options, the property also offers value-add potential.
The property has been designed and split into three separate warehouses, providing the flexibility to lease it to separate tenants individually or create three units of 606sqm, 447sqm and 226sqm on strata titles.
Its current income is $140,100 per annum plus outgoings and GST.
The property is being offered for sale by Savills in via offers to purchase, which close at 4pm on Thursday, 30 June.
A property at 124 Enterprise St in Kunda Park has been sold to a Sunshine Coast owner occupier.
Savills has also recently completed the sale of another property in Kunda Park for $1.66 million.
The property at 124 Enterprise St features 1200sqm of net lettable area on a 2592sqm site and was sold to a local Sunshine Coast owner occupier.
O’Meara says there are currently a number of owner occupier buyers in the market for existing vacant buildings on the Sunshine Coast.
“We have just transacted three other smaller industrial sheds in the Kunda Park estate in the past month to owner occupiers at 13 Avian St, 84 Enterprise St and 10 Endeavour Drive,” he says.
