Rockhampton primed for market rebound
Rockhampton’s commercial property market is a hotbed of bargains for both investors and lessees, but savvy investors should not wait around, with predictions the market could begin to rebound by the end of the year.
Local agent Diane Edwards, from Queensland Commercial Property Agents, says an oversupply of shops, offices and larger industrial sheds in particular is seeing buyers negotiate significant reductions on both sales prices and leases.
She says smaller shed spaces are one of the only areas not experiencing discounts, as they are being quickly snapped up as many businesses look to keep overheads low after the downturn in the mining sector.
But rather than see activity dwindle, the current conditions have meant that the Rockhampton region has outperformed other areas in commercial property sales this year.
We’ve still got beef and resources and investors from down south are aware of that
Rockhampton is ranked 14th in Queensland terms of volume of commercial property sold, behind Brisbane and the Gold Coast, but ahead of other regional cities including Townsville, Mackay and even Ipswich.
Edwards says investors want a return of at least 9% on their investment, meaning many were looking for – and successfully negotiating – sizeable reductions on the asking price, in some cases up to 30%.
She says most of the investor interest is from savvy investors from Brisbane, Sydney and Melbourne, with little from overseas.
“I am feeling very confident, we are doing really well at the moment.”
“We are experiencing a bit of a trough at the moment but I would expect to see an increase again by the end of the year. We’ve still got beef and resources and investors from down south are aware of that.”
Knight Frank proved that there is no shortage of interest in the region, selling a property at 162-164 Quay Street in Rockhampton City at auction for $800,000.
A spokeswoman for Knight Frank says there had been a lot of interest in the property and numerous inspections in the lead up to the auction, with a crowd of about 20 people attending on the day.
The iconic building offered 2322sqm of lettable space over three floors and was marketed as ideal for a riverside redevelopment.
Other notable properties on the market in Rockhampton City include the Harbour Board building at 288 Quay St, which is on the market for $850,000.
The two-storey colonial brick building, set on a 1214sqm allotment, boasts high ceilings, an ornate interior staircase and 30m of Fitzroy River frontage.
A five-storey office building at 34 East St, Rockhampton, is also on the market for $7.3 million, after an earlier contract on the property fell through.
The property has 4500sqm of floor area, with a net passing income of $740,000 and a fully leased income of more than $800,000.