Recent population growth in the Sunshine Coast has resulted in an increase in its skilled workforce; consequently, local government has recognised the need to accommodate the growth in skill sets and facilitate the movement towards a diversified economy, transforming the Sunshine Coast into a key economic centre where new commerce complements established industries.

Annual RevPAR declined by 2.4% to $137 for the year ending September 2019. ADR declined 0.7% to $186 for the year ending September 2019. National occupancy declined by 1.7% to 73.8%

Sales volumes YTD are ~$18 billion across 155 transactions, a ~50% increase on the same period in 2018 ($12 billion). Cost of debt to investors has in many instances fallen to below 2.75% in part due to the three 25bps interest rate cuts. Top prime CBD performers were Perth and Brisbane, registering quarterly net effective rent (NER) growth of 3.4% and 1.4% respectively.

Industrial GVA was negative at Q2 2019 (-3.0% y-o-y), the lowest rate of growth since the GFC. Average industrial rents were relatively stable over the quarter in all markets except Perth. Super prime net face rents fell -0.8% q-o-q, with the 5.4% q-o-q decline in Perth dragging down the Australian average. Super prime yields remained flat in all markets except Adelaide, supported by the abolition of stamp duty and an influx of investors priced out of the Melbourne and Sydney markets.