A Sunshine Coast industrial fund has been fully subscribed before its development application has even been lodged, a result that says as much about the state of the regional market as it does about investor appetite.
Sunshine Coast-based RM Capital, the investment arm of property developer Rafter Myers, paid $3.85 million to acquire a 5,144 square metre site on Central Park Road, near the entrance to the Yandina Industrial Park. Settlement occurred in mid-June. The RMC Yandina Fund, established to allow investors to partner in the enterprise, closed fully subscribed before the project reached DA stage.
The plan is to subdivide the site into 11 smaller strata lots and sell them to owner-occupiers and investors over the next two years. The fund forecasts a total return of around 68 per cent with a projected annual internal rate of return of 20 per cent.
Why Investors Moved Fast
The quick uptake is not difficult to explain.
Industrial land on the Sunshine Coast has been tightening for years. Established precincts in Kunda Park, Kawana and central Caloundra have had little to no vacant land available for some time. The Coolum industrial precinct was close to fully sold well before the current growth cycle hit its stride. Yandina, positioned with direct Bruce Highway access and roughly 80 minutes from Brisbane, has long been seen as one of the more accessible remaining options.
RM Capital director Remi Rafter described the site as “a key corner site, one of the best in Yandina” and said opportunities to develop industrial sites in the area were rare. The site currently houses an older style warehouse and several vacant buildings, all of which will be demolished to make way for the 11 new lots.
The Sunshine Coast is one of the fastest growing regions in Australia, and that growth has not been limited to residential land. Demand for industrial zoned premises from trades, logistics operators, construction suppliers and service businesses has grown alongside population, and the stock of available land has not kept pace.
It is the same supply dynamic that has driven RM Capital’s activity across the region more broadly. The firm’s recent Gympie residential land deal followed a similar pattern: off-market acquisition in a supply-constrained regional market, investor fund fully subscribed quickly, construction underway before most buyers knew the site existed. Different product type, same underlying thesis.
A Region Running Out of Room
Population growth on the Sunshine Coast has been sustained and significant. The infrastructure built to support it, including the Maroochydore City Centre, airport expansion and ongoing road upgrades, has brought employment and commercial activity along with it.
The problem is that growth of that speed generates its own constraints. When residential activity expands at pace, so does the trade and supply chain base that serves it. Concreters, electricians, plumbers, steel fabricators, cabinet makers, landscapers and building materials suppliers all need industrial space to operate from. When the stock of available premises is thin, competition for what exists pushes rents and land values higher, and the cost of that pressure flows somewhere.
For builders, it usually flows into project timelines and input costs. A subcontractor paying more to lease their workshop or yard does not absorb that cost. It goes into their rates, and eventually into your programme.
The Yandina deal is a small piece of a broader Sunshine Coast and regional construction supply picture that has been tightening since the post-COVID building surge drove a sustained uplift in regional Queensland population. The industrial market is where that pressure has been most quietly absorbed.
What the Yandina Lots Will Deliver
RM Capital’s plan for 11 strata lots targets the smaller end of the market, which is where unmet demand tends to be most acute.
Smaller format industrial strata units suit the trades, service businesses and construction suppliers that make up the bulk of the Sunshine Coast’s commercial base. They are accessible to owner-occupiers who want to secure their own premises rather than continue paying into a leasing market that has moved consistently in one direction.
A code assessable development application will be lodged with Sunshine Coast Council. Subject to approval, RM Capital aims to complete the subdivision and sell all lots within two years.
The Good Builder Take
Industrial land is easy to overlook when the housing conversation dominates every headline. But the supply chain that builds homes needs somewhere to operate from, and on the Sunshine Coast that somewhere is running out. When investors fund a project before a DA is even lodged, they are pricing in a market where demand has already outrun supply. For trades and builders in the region, the message is the same: if securing your own premises is on the radar, the time to move is not later.
Your Questions Answered:
Is the Sunshine Coast running out of industrial land?
The short answer is yes, in practical terms. Key established precincts including Kunda Park, Kawana and central Caloundra have had minimal vacant land available for several years. Newer precincts like Coolum have also filled up faster than expected. Sites with direct highway access and functional industrial zoning, which suit the widest range of businesses, are increasingly scarce across the region. The fact that a fund was fully subscribed before a development application was even lodged reflects just how tight the available supply has become.
How does industrial land supply affect builders and tradies on the Sunshine Coast?
Most builders and tradies need somewhere to operate from, whether that is a workshop, a storage yard, a fabrication shed or a materials supply depot. When industrial land is constrained and rents rise, those operating costs increase. For smaller operators, securing affordable premises becomes harder, and the cost tends to flow into pricing, project timelines or both. A tighter industrial market also affects the supply chain builders rely on. If concrete suppliers, steel fabricators or cabinet makers are paying more to operate, that pressure does not stay with them.
What is a code assessable development application in Queensland?
A code assessable development application is one assessed by the relevant local council against specific planning codes, rather than requiring full impact assessment and public notification. It is generally a faster pathway than impact assessable DAs because it does not trigger a formal public submission process. For industrial subdivisions like the one proposed at Yandina, code assessment is common where the use and scale are consistent with the existing zoning and the planning scheme codes for that precinct.
What types of businesses need industrial zoning on the Sunshine Coast?
Industrial zoning covers a wide range of business types that cannot operate from commercial or residential premises. On the Sunshine Coast, the primary demand comes from trade contractors in construction, electrical, plumbing and air conditioning; building materials suppliers; logistics and freight operators; light manufacturing businesses; equipment hire companies; and service businesses that need yard space or workshop facilities. As residential construction activity has grown in the region, demand from trade and supply chain businesses has grown with it.
How much does industrial land cost on the Sunshine Coast in 2026?
Pricing varies significantly by location and lot size, and the market has moved considerably over recent years. Premium precincts closer to the coast or with established infrastructure have commanded higher rates per square metre. Yandina and outer areas have generally sat at lower price points than Kunda Park or Kawana, but the gap has narrowed as supply has tightened. The RMC Yandina Fund paid $3.85 million for a 5,144 square metre englobo site, which will be subdivided into 11 smaller strata lots. Pricing for the individual lots has not yet been disclosed.
General information only. This article does not constitute financial, legal, investment or professional advice. Readers should seek independent guidance suited to their specific circumstances.
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