05 Oct 2022
Words
Trudy Crooks Informer 104
New Financial Year New Opportunities
Spring is in the air and the accommodation industry continues to flourish. A new financial year brings with it an abundance of new opportunities and the resurrection of some which have been dormant for some time.
We will continue to witness a trend of Off Market deals across all asset classes and we think this will only continue to grow. There is nothing more important than having a relationship with a broker you like and trust to make sure you have people working for you and in your best interests.
We are noticing a lot of clients are realising that now, despite looking down the barrel of a very good year of trade but with continuing uncertainty overseas, are seeking to capitalise on strong demand for good assets and more importantly, strong bank and valuer support. Most deals we do, need to go through a bank and valuer so they often hold the key to the market.
Really experienced operators are realising that now is a great time to cash out, take a holiday and be ready with cash to pounce when new opportunities arise, as they do.
Interestingly, analysis of our inaugural industry report into Management Rights, reveals the biggest growth in asset value has been enjoyed by those buyers who were bold enough to buy short-term Management Rights in Brisbane during the pandemic. The big question on everyone’s lips is: “In six to 12 months’ time, where did the smart money go and did you sell at the right time?”
Off-The-Plan sales are making a comeback with a vengeance which is great news for the industry. While some parts of the market such as regional areas have remained buoyant and have experienced large transactions during the pandemic, there’s been other parts of the market, mainly those affected by international tourism such as the Gold Coast and Cairns and the permanent Management Rights’ space, where there were fewer transactions than previously.
Particularly in the Off-The-Plan space, it is new developments which often entice experienced operators to sell existing assets and create momentum. We are delighted to see some of the first big Off-The-Plan opportunities such as the iconic Gold Coast development Paradiso Place come back to market.
With the housing crisis across the country, we hope to see more red tape cut and more support by local governments to help ensure the feasibility of new developments, not only for the good of our industry but for those seeking accommodation in the current tight market.
All-in-all, it’s an exciting time to be invested in our industry.
Short-Term Management Rights deals brokered during the pandemic which have already increased in value.
- Redvue Luxury Apartments, Redcliffe:
A contemporary short-stay complex located directly overlooking Moreton Bay in the breezy bayside suburb of Redcliffe, sold by Jeff Keast and Alex Cook
- Astor Apartments, Spring Hill:
An iconic short-term Management Rights’ business in Spring Hill within striking distance of Brisbane hotspots, sold by Jeff Keast
- The Ridge Apartment Hotel:
Sold Off Market by Jessie Shi, this rare 3.5-star accommodation property in the Brisbane CBD came with all of the hard work completed
- The Dockside Apartment Hotel, Kangaroo Point:
A rare opportunity to secure a 146-unit property over 13 levels, sold by Jessie Shi
