Widebay Property Market Update 2022
The Wide Bay Commercial Report provide market data and key indicators for the aggregate property market conditions within two Local Government Area: Bundaberg and Fraser Coast. A spike in commercial sales occurred in Q3 2021, as COVID-19 restrictions eased, and Queensland opened borders. Commercial sales have declined since, due to lack of supply. In the Maryborough Greater Region for example, there were approximately 100 listings in December 2020. This has dropped to 16 listings in early 2022.
The number of industrial property sales in Wide Bay is limited, with just 8 sales in Q1 2021 and 6 sales in Q1 2022. Available stock is limited, with only 1 current listing for an industrial property over 500sqm, the market has no small to medium size sheds for purchase. Thus, further price growth is expected in 2022, due to escalating competition for space.
Commercial leasing activity has dramatically declined, with 9 leases recorded in Q1 2022 (compared to 26 in Q1 2021). However, there is a declining pattern overall for the past 5-6 quarters, which when combined with the increase in price is suggesting an undersupply in the market.
The number of industrial properties leased declined significantly since Q1 2021, with 4 leases recorded in Q1 2022 – the lowest amount leased in the past 12 months. Industrial leasing is in high demand, with lessors willing to pay higher for a space. At present in Maryborough there are 5 industrial spaces available for lease. 3 of these are not yet built (still in construction or planning stage), 1 already rented, and another available to the market. Thus, there is a dire need for supply, with very limited land to build more industrial sheds.
Wide Bay is set to benefit from an estimated $5.6B of planned future project developments, scheduled to commence between 2021-2023. There are 367 major projects commencing, which represents 98.6% of the original development pipeline. This is relatively high, as 2021-2023 has represented numerous uncertainties due to COVID-19 and supply shortages.
