Investor demand, tourism drives Byron commercial land values
THE strong tourist sector and high investor demand, combined with low interest rates, has seen a moderate increase in commercial land values (9.78 per cent).
The Byron Bay commercial centre continues to grow steadily through redevelopment of existing sites.
The 2017/2018 season was one of the best tourist years in recent record and this was reflected in commercial rents.
Continued investor activity has also seen a firming of capitalisation rates over the past 18 months and strengthening of values.
Land tax is an increasing burden on commercial real estate, particularly in Byron Bay where the high land values result in significant land tax burdens.
Commercial premises in Mullumbimby are more aligned to providing services to the local population, (from Mullumbimby and the surrounding rural localities), supported by the tourist trade.
There are very few shop vacancies in Mullumbimby and these are typically non-food approved and or are in fringe locations.
Typical commercial land values
- Centennial Cct, Byron Bay (1000 sqm): $1,050,000, up 23.5 per cent
- Jonson St, Byron Bay (1012 sqm): $1,780,000, up 13.4 per cent
- Jonson St, Byron Bay (518.5 sqm): $3,850,000, up 10 per cent
- Marvell St, Byron Bay (1012 sqm): $2,450,000, up 6.5 per cent
- Burringbar St, Mullumbimby (554.6 sqm): $730,000, up 7.4 per cent
- Rajah Rd, Ocean Shores (6081 sqm): $2,580,000, no change
- Clifford St, Suffolk Park (3302 sqm): $2,140,000, up 8.1 per cent.