Challenges Mount for Gold Coast Commercial Property Sector in 2026

Vacancy rates in the Gold Coast commercial property sector have surged to 14.5% as of June 2026, the highest level in five years.

This matters now because the Gold Coast has been positioning itself as a major business hub, with the city's economic development agency, Study Gold Coast, actively promoting the region as an ideal location for startups and entrepreneurs. However, the current challenges facing the commercial property sector could undermine these efforts and impact the local economy. The recent downturn in the Melbourne property market, for example, has led to a decrease in investor interest, which could have a ripple effect on the Gold Coast market.

In the Gold Coast, specific areas such as Surfers Paradise and Southport are feeling the pinch, with several high-profile office buildings on Nerang Street and Scarborough Street standing vacant. The Gold Coast City Council's efforts to revitalize the CBD through initiatives like the Surfers Paradise Foreshore Revitalisation Project may be hindered by the lack of demand for commercial space. Meanwhile, organisations like the Gold Coast Chamber of Commerce and the Queensland Government's Department of State Development are working to attract new businesses to the region, but may face an uphill battle in the current market conditions.

According to data from real estate firm, Colliers, the average annual rent for prime office space in the Gold Coast has fallen by 12% over the past 12 months, from $645 per square metre to $567 per square metre as of March 2026. This decline in rents is a clear indication of the softening demand for commercial property in the region. Furthermore, the latest figures from the Australian Bureau of Statistics show that the number of new commercial property developments in the Gold Coast has decreased by 25% over the past year, from 15 projects in the June 2025 quarter to 11 projects in the June 2026 quarter.

Looking Ahead

So what happens next for the Gold Coast commercial property sector? Industry experts predict that the market will continue to face challenges in the short term, particularly in light of the rapid demand for AI datacentres in Australia, which could crowd out land for housing and commercial developments. However, there are opportunities for investors and businesses to take advantage of the current market conditions and secure high-quality office space at competitive prices. The key to success will be to identify areas with strong growth potential, such as the health and education precincts around Griffith University and the Gold Coast University Hospital, and to work with local organisations and government agencies to drive investment and job creation in these sectors.