Development sales led Kollosche Commercial’s stellar first quarter with more than $34 million worth of commercial property transactions for the three months to March.

The March quarter deals included the $13.51 million sale of a development site at 215-217 Jefferson Lane, Palm Beach – which set a new price benchmark for beachfront land in the suburb – and another development site at 2797 Gold Coast Highway, Broadbeach, which sold for $4.3 million.

Total sales over the three months added up to $34.11 million with an average sale price of $2.84 million while sales for the month of March were even more impressive totalling $29.888 million at an average of $3.736 million.

They followed Kollosche Commercial achieving $192 million in unconditional sales for 2021.

Kollosche Commercial sales specialist Adam Grbcic said the sales highlighted the continued strength of the Gold Coast development market, especially for luxury boutique projects.

“The Palm Beach site which Tony Grbcic and I sold with colleague Troy Dowker is approved for eight properties, so those will end up being high-end prestige apartments,” Mr Grbcic said.

“We received a massive 350 inquiries and 11 bidders on auction day, which goes some way to show the level of demand.

“Boutique sites such as this remain firmly in demand from Broadbeach all the way to the Tweed.”

Adam Grbcic said it wasn’t just development sites that were attracting investors.

“We are seeing huge inquiry rates for freehold assets priced between $1 million and $5 million with industrial properties and storage the most sought after,” he said.

“Demand is from both owner-occupiers and investors, who are generally looking for between 400sq m and 600sq m of building area with vacant possession or short-term leases in place.”

Mr Grbcic said even vacant properties were attracting plenty of attention.

“We sold a vacant warehouse spanning 485sq m in a boutique complex for $1.35 million – a gain of $905,600 since it last sold in 2003.

“We also sold a fully-occupied storage facility in Miami for $2.4 million, delivering the sellers a 33 per cent gain in four years.”

Adam Grbcic said the growth in commercial property sales was broad based and not confined to one category.

He said buyers came from across southeast Queensland and interstate with plenty of interest from Sydney and Melbourne investors who had seen yields continue to shrink in the southern markets.

Kollosche Commercial sales specialist Tony Grbcic said they were still seeing first-time commercial property buyers come into the market.

“These are people who have made gains in the residential market and can see that there are strong yields available for tenanted assets at an attractive price point compared to commercial property in southern markets,” he said.

“The residential market may be predicted to lose some momentum this year due to rising interest rates and the loss of the covid factor, however, we believe, commercial will continue to gain momentum.”

For more information about the transactions in this article and or market overview please contact father and son team at Kollosche Commercial (L) Adam Grbcic and (R) Tony Grbcic via the below contact details.