Market reality bites into industrial land prices

A market correction on Sunshine Coast industrial land costs has created a unique opportunity for business.

The State Government has announced, following a price review by an independent valuer, the cost of some lots at Sunshine Coast Industrial Park (SCIP) at Caloundra will be reduced by about 10 per cent.

The parcels of industrial land sized from 2434 square metres in the estate’s northern sector have dropped from $253 per sq m down to $226 (both excluding GST) on average.

Larger lots in the southern sector, from 5709 sq m upwards, have not been formally re-priced, however marketing agent Glen Grimish has instructions to present all commercial offers.

Mr Grimish, of CB Richard Ellis, said while prices have fallen, height limits have gone up.

Structures at the SCIP will now be allowed to go up to 15 metres – four metres higher than the original limit.

"The new price range at SCIP makes the industrial estate a particularly attractive opportunity," he said.

"The Government has taken on board the reality of the current market for industrial land on the Sunshine Coast.

"The new height limits will add further incentive, allowing industries which use cranes or silo structures to take a close look at what SCIP has to offer."

Mr Grimish said the recent purchase of land and relocation to SCIP by former Brisbane-based Dunemann Constructions heralded the beginning of a new growth chapter for the giant industrial park.

Dunemann has joined big-name companies such as Sunbus and Energex as SCIP clients.

"While the economy still has a way to go, Trevor Dunemann’s purchase shows that many local business owners have confidence in the Sunshine Coast market, and that they will continue to use The Coast as a base from which to operate," Mr Grimish said.

Economic Development and Entrepreneurship portfolio councillor, Lew Brennan, welcomed the price reduction and agreed that it could spur some potential clients into action.

"The location of SCIP, particularly its proximity to the Bruce Highway, makes it a perfect headquarters for many companies which require easy access to Brisbane and locations to the north," he said.