4th Qtr 2016
Situated about 4 hours north of Brisbane, Bundaberg offers a mix of industrial, commercial, retail sales and leasing opportunities.
Self-managed super funds (SMSFs) seeking strong yields are the dominant buyers in the region. Shops and small centres are commanding yields starting from 8%, while industrial assets are generating income returns
of up to 11% p.a. Vacancy rates in Bundaberg are moderate, although retail vacancies have fallen over the past 6 months.
Unemployment is a factor in this region, so more people are having a go at opening businesses, especially where they can build a link to the tourism and food sectors. There’s also evidence some local small businesses have taken a decision to leave behind the second bedroom or garage, and take up a lease in a more formal commercial leasing arrangement.
Some of the larger food/entertainment businesses have come on the market in the last few months. These include 'The Club Hotel' and the 'Innes Park Country Club', an 18 hole golf course on 44 acres close to the beach.
Mortgagee in possession sales have increased in the Bundaberg Region, many of the owners finding the current economic climate too hard to manage their way out of.
The last major infrastructure announcement of the QLD Government, the $19.8 million - 28.5 kilometre Bundaberg Port Gas Pipeline has not created too much tangible change at present, Knauf being the only new venture in the area directly linked to the pipleine. Early days still, the business community may be waiting to see who makes the first step.