CQ retail announcements paving way to positive growth
ALTHOUGH Herron Todd White's April property report had Rockhampton's commercial real estate pegged at the bottom of the market, there are encouraging projects in the works.
"We are aware of a neighbourhood centre with a small supermarket under contract in central north Rockhampton at a price of about $3.7 million," the HTW report said.
"Other changes to the retail landscape are the recent announcement that Aldi will be building two new stores in Rockhampton soon and that Solly's discount store and Coles may take up leases in the former Bunnings warehouse after Bunnings moved into the ex-Masters site in North Rockhampton."
HTW said conditions for retailers appear to remain relatively tough as the general economy is only just starting to improve.
"Slowly improving conditions for retailers will take some time to flow on to retail property values as a relatively high number of vacancies will need to be absorbed before there will be any realistic expectation of rental growth," they said.
"For this reason, we expect rental rates to remain flat for the foreseeable future.
"Yields are also expected to remain unchanged in the foreseeable future but are more likely to be influenced by macro factors rather than the strength or otherwise of the retail sector in central Queensland."
Knight Frank Principal Neale Crow said while the retail sector in Rockhampton had been relatively flat and with more vacancies causing downward pressure on rents, this situation had now stabilised now that employment was improving.
He continues to field enquiries from southern buyers attracted to Rockhampton's commercial properties offering a nine per cent yield on a five year term.