Crunch Slows Investors; Coast Markets Tail off as They Feel the Force of the Financial Crisis: Report

Article excerpt

SUNSHINE Coast commercial property should start improving post 2011, although uncertainty remains about the timing of new projects in 2010-2011, according to the latest research from CB Richard Ellis.

All property sectors bore the brunt of the economic slowdown, which started in earnest in the second half of 2008.

CBRE's MarketView report shows the extent of the slowdown and the impact on the Sunshine Coast's retail, industrial and office markets in 2008-2009.

CB Richard Ellis Sunshine Coast managing director Rem Rafter said the global financial crisis had caused a marked reduction in investment sales activity.

"Investment activity in 2008-2009 was subdued, to say the least," Mr Rafter said.

"Our agency concluded some major asset sales, particularly towards the end of the financial year. But there was a dearth of activity in the $1million to $5million price bracket."

Mr Rafter said the $110million tally of retail sales of $1million or more in 2008-2009 was largely confined to three major assets − Nambour Plaza and Nambour Central (sold for a combined $54.5million) and Mountain Creek Shopping Centre (which CBRE sold for $18.6million).

"This lack of action continued in the office and industrial markets, with investors unwilling to engage in pre-commitments or to show their hand at auction."

Office vacancies surged from 6. …