DURING 2020 the Bayside region of Queensland recorded $101.704 million in commercial transactions represented by 76 sales, a figure that was up 46.26 per cent on 2019, according to Ray White Commercial’s latest Between the Lines* research.
“2020 has been a trying year for the international economy, however, Australia has fared well with low COVID-19 infection rates and limited lockdowns allowing our domestic economy to keep on moving,” said Ray White Commercial Bayside Director Nathan Moore.
“Despite the hardships that COVID-19 brought to many businesses and landowners during 2020, the run to the end of the year has brought much optimism and confidence for 2021.
“The low interest rate environment which is expected to remain for the medium term is an encouraging sign for investors and owners alike.
“We recorded a stand-out year of commercial sales in 2020, along with continued growth in capital values. These results were somewhat unexpected when the country went into lockdown in March 2020.
“The resilience of many business owners was highlighted in 2020, and while vacancies may still be elevated, the strong levels of enquiry and the take-up seen in the latter months of 2020 will put the Bayside region in good stead for 2021.”
“The greatest turnover was achieved in the Cleveland precinct ($43.884 million) in 2020, aided by the large retail centre transaction in Wellington Point,” said Ray White Commercial Head of Research Vanessa Rader.
“Capalaba recorded 40.02 per cent of sales – represented by a combination of bulky goods and traditional office and industrial offerings.
“Overall, this year, these larger retail sales resulted in this class being the most active in 2020 – representing 48.13 per cent of all turnover.
“The more traditional asset class of industrial accounted for 22.42 per cent, with Capalaba being home to the largest number of these sales, with an average sale price of $617,579.
“As private investors seeking income-producing assets made up the majority of buyers in the market in 2020, we continue to see interest in alternative asset classes, with growth in the childcare and medical sectors due to their strong lease covenants.”
*Ray White Between the Lines – Bayside Commercial End of Year Wrap – January 2021.
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