This is a trend we ’ re seeing across Australia and high population growth states such as Queensland , Tasmania and Western Australia may have the greater potential however investment demand has been active across all states and prices do vary . However , in the $ 2 million price range , smaller medical suites can be purchased with larger facilities also possible in some locations .
South East Queensland Retail - While retail assets have received a bad wrap during COVID-19 due to forced closure and strong move to online retailing , we ’ ve more recently seen people moving back to bricks and mortar stores - reducing online trade statistics . However , our behaviours towards retail had been changing prior to COVID-19 . We ’ ve seen retail adapt and move away from clothing and soft goods , to personal goods , services and food in a lot of local centres .
Over the last year we ’ ve seen many buyers actively pursuing retail assets despite rising vacancies , with the strong gains in population for South East Queensland being a focus for many investors . Local convenience-based retail continues to do well but prices have risen , making a $ 2 million investment more difficult .
“ Set and Forget ” Assets - These are assets offering investors long-term rental returns and are typically assets like service stations , child care , and fast food restaurants , offering the owner a stable income stream . While popularity for these have been high over the past 10 years , causing values to skyrocket and investment yields to plummet , there are still opportunities to be had in this category - however , further up the risk curve . Regional cities across Australia continue to offer value for these types of investments and sales have remained high during late 2020 and 2021 . However , opportunities have started to dissipate this year given the likelihood of interest rate rises . These are quality investments if they locationally make sense and the quality of tenant and security of income is high . Also , if investing in these assets , consider an exit strategy - this is more important in a regional city as obsolescence could be a factor .
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