COOLUM DEVELOPMENT TRACKER
Fraser Martin
Sales & Leasing Agent 0423 273 438 fraser.martin@raywhite.com
Cory Hoy
Sales & Leasing Executive 0421 004 484
cory.hoy@raywhite.com
MARKET SENTIMENT
One of the major points in this month's piece is the comparison of Coolum land valuations to other areas on the Sunshine Coast. 120% growth in land valuations reflects the area's attractiveness for investment. However with good news, comes a dampener with land tax being one to look out for with investors in the area.
The sales and leasing transactions provide valuable insights into the current market activity. The sale of the solar warehouse at 3/84-86 Link Crescent for $1.2 million indicates strong demand for commercial properties in the area. Additionally, the lease of 200m2 at 10/59 Dacmar Road for $190m2 demonstrates the competitive nature of the leasing market.
The discussion about the prospect of an interest rate cut provides further context for the economic environment. It seems that various factors, such as stronger than expected US inflation data, residential housing price strength, and income tax cuts, are influencing the decision to maintain interest rates at their current levels.
Overall, the continued strong enquiries and market activity suggest a positive outlook for The Coolum Eco Industrial Park and the broader Sunshine Coast industrial market.
COOLUM LAND
Total vacant land in the estate without development applications accounts for 7 lots with a total land mass of around 38,000m2.
LAND TAX
Owners and Investors in the estate must be weary of land tax due to the unprecedented levels of growth the estate has experienced over the last 12 months. $/m2 price growth of land in the estate has outstripped other surrounding suburbs on the Sunshine Coast.
Land tax is calculated using an average of the property’s last three unimproved land values, as determined by the State Government.The latest round of valuations was completed in late 2023 and has resulted in a 120% increase in land value for Coolum.
The threshold for companies and trusts is $350,000. We see owners with shed sizes over 362m2 now having to pay land tax.This is on the assumption that there is 50% site coverage.This latest increase shows the importance of owners engaging their accountant to ensure they are purchasing these assets in the correct entities.
Marketing Agents
STAGE 2 PROGRESS
Development in stage 2 of the estate is moving quickly.There is plenty of fill on the Western side of the estate bordering the lake.
The motocross track is now flat and the earth moving equipment is operating off the eastern end of Research Street. 1.3 million cubes of fill is required and it seems as though this is difficult to find. We haven’t seen the truck and dogs in the estate for a few weeks now which leads us to believe they are on the search for more fill.As we are aware stage 2 is now supposedly 21 months off according to EDQ.
Please excuse our older photographs this month, it has been tough going to find a dry day to fly the drone.
COOLUM HARD STAND
Currently there is just over 18,000m2 of hardstand in the estate across 8 lots.
HARD STAND
There are also investors making good use of hardstand to hold land and generate income. Currently there is just over 18,000m2 of hardstand in the estate across 8 lots. Much of this is owner occupied however some investors have looked to this as a way to hold land and generate a return of around $30-40/metre.
If you have the capacity to hold the land, there is a very good argument to obtain approvals for a hard stand site and get a lease in place.
The return is strong, very low maintenance and significant capital growth prospects associated with the investment.
Currently we are managing a hardstand lease listing in the estate comprising of 7,000m2. Please reach out if you are interested.
COOLUM DEVELOPMENT APPLICATIONS
There is currently 84 units under 250m2 with development applications in place and have not yet commenced construction
DEVELOPMENTAPPLICATIONS
Recently 2 lots at 248-256 Quanda Rd have lodged their DAin March consisting of 38 Units all under 250m2.
This means we now see a total of 139 Units under 250m2 that are under construction or have development applications submitted.
We continue to see strong demand in these size ranges and prices remain elevate. With units between 50 to 150m2 achieving an average of just over $4,400/m2.The sheer supply will really test the resilience of the man shed and small scale owner occupier markets.
There is now just under 93,000m2 of land with development applications in place, consisting of 20 lots. Keeping in mind that 9 lots contain freehold DA’s
SALES & LEASING DATA:
Below is the average sales and leasing data over the last 12 months to March 2024. Keeping in mind that there has been a wide range of results that sit well outside of the average.The data certainly shows the demand in these smaller units, however it will be interesting to see how this plays out as more supply comes to the market.
*Due to the limited sales results over 450m2 we capture 24 months of data.
COOLUM UNDER CONSTRUCTION
There is currently 25,000m2 of land under construction, consisting of 9 lots.
UNDER CONSTRUCTION
There is currently 25,000m2 of land under construction, consisting of 9 lots.These units will be ready at varying stages throughout the year.As expected, works have commenced at 16-22Access Crescent consisting of 7 units between 50 and 250sqm. Below summarises the number of units and sizes under construction.
Sites under construction are progressing quickly,The site to the top right, photographed in Mid FEB now has panels erected and hardly looks recognisable. We have noticed the trades are working long days to get this completed.
The Karloo site on 23-25 Access Crescent is nearing completion and is looking like a premium solution for small scale business owners and man shed buyers. We see this complex comparable to those on at 59 Dacmar road in the Compass Building. Having further exclusivity to car-parking and therefore resolving a lot of body corporate issues.
COOLUM STOCK ON MARKET
STOCK ON MARKET
A recent development in this report will be to track stock on market. We will report this from month to month and note the changes in levels of stock in a given size category.
A surprising development is 6 listings over 650m2 and only 9 listings between 150 and 250m2.
This data is based off what is represented on the portals (CRE and REA) and does not include off market listings.