SA MARKET OVERVIEW
SOUTH AUSTRALIA
SA Market Overview with Fendi Klementou What are the key market trends occurring throughout 2022 in your region?
local to South Australia. This is not really different to other years other than we would have seen a greater number of overseas buyers. What types of assets are most in-demand given the current environment? We are seeing a huge demand in: - Industrial - Childcare / Medical - Retail - Commercial
We have experienced strong sales results despite the increase in cost of funds. We expect that there will be some recompression with yields due to the continued increase in the cash rate. We also expect that demand for quality assets will remain strong. What have been the fundamental drivers of demand amongst buyers? The fundamental drivers have been: - Cost of funds and easy access to credit - Quality assets underpinned by great lease covenants
FENDI KLEMENTOU Commercial Sales & Leasing Executive - LJ Hooker
- Development Sites - Leased Investments
The above list is in order of the demand that we are experiencing and does differ to previous years where the greatest in demand asset class was retail. What are your expectations for the commercial property market over the next twelve months? Industrial: The rising demand for Industrial / Waraehouse space driven by the growth of ecommerce and manufacturing, has seen national industrial vacancy rates decrease to below 1%, making Australia the tightest logistics market in the world with the lowest industrial vacancy rate. I anticipate that over the next 12 months,
- Strong economic conditions - Underutilized assets with a value-add proposition
Reflecting on recent transactions, what has been the profile of buyers and has this shifted from previous years? Looking at all of our sales over the last 6 months we have seen interest from both interstate and overseas however the end buyers in most cases have been
96 – September / October 2022
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