The six months to January 2018 has been a standout start to the year for the Gold Coast office market, resulting in positive take up of space coupled with withdrawal of stock flowing through to compression in total vacancy to 10.6%. This is the lowest rate recorded for the total Gold Coast market since July 2008. Broadbeach is the smallest of these markets and has shown improvement this period with a low vacancy rate of just 6.6% down from 8.7% six months prior. Robina/Varsity Lakes is slightly up, yet consistent on results for the last 18 months recording 7.2% vacant.
Continuing the theme of quality beachside locations, Surfers Paradise has been the standout performer this period recording 3,063sqm net absorption and reducing vacancy to 12.0%, more than halving their vacancy of just three years ago. Bundall saw some small negative movement in absorption to record an increase of vacancy to 11.8% while Southport continues its volatile trend reducing this period to 13.2% off the back of withdrawal of resulting in the -1,258sqm in take up.
The impacts of the upcoming Commonwealth Games are uncertain for the office market, however we do expect some reduction in enquiry levels during this time with tenants reluctant to relocate during the anticipated disruption to traffic flows and access across the city.