DESPITE the large volume of sales of micro warehouses across Queensland and Sunshine Coast, the demand for the typically sub 200/sqm asset remained strong in 2018, according to Ray White’s latest Between the Lines* report.
Ray White Head of Research Vanessa Rader said during 2018, there was $31.87M transacted across the major regions supplying micro warehouse assets to the Sunshine Coast.
“This represented a small 6.71 per cent decline in sales compared to the height of the market in 2017, although still a sizeable increase from the $24.97M of total sales turnover in 2016,” Ms Rader said.
“Across the Sunshine Coast there has been significant interest in these small affordable assets, particularly in an environment of low interest rates and rise of the self-managed super fund. But given the slowdown in financing availability, this did subside slightly in 2018.
“Completed developments in newer industrial estates has peaked in the last few years growing this turnover level, particularly in areas such as Coolum where the underlying low vacant land prices have enabled many developers to enter the market, keeping sale prices in the sub-$2,000/sqm price range.”
Ray White Commercial Noosa and Sunshine Coast North Property Consultant Tracey Ryan said with volumes up over the last two years, there had been growth in the asset class coming from several users or buyer types.
“Small trade businesses have seen growth driven by an uptick in the residential market and capital projects which has also driven a rise in new business numbers across the Sunshine Coast have increased,” Ms Ryan said.
“While local buyers who may have downsized in the residential sector have also created demand for a recreational storage space.
“The niche for this storage space or ‘toy cave’ has been identified by developers across all SEQ, with a desirable price point identified in the sub $300,000 range, which is attractive to small industrial investors also.
“As such, we’ve seen in 2018 across the total Sunshine Coast market an owner occupier level of approximately 65 per cent.”
Ms Rader said capital values achieved for micro warehouse space had been known to fluctuate, depending on new supply entering the market.
“Maroochydore regions including Kunda Park and Buderim have seen good upward momentum in values over the past few years, currently averaging $1,973/ sqm, this represents 7.32 per cent growth over the past 12 months,” she said.
“Noosaville, the most popular for local Noosa buyers, demands a premium for this asset type.”
Selected Sunshine Coast micro warehouse transactions:
*Ray White Between the Lines – Sunshine Coast Industrial Micro Warehouse Overview – February 2019.