Issue 27 | The Property Development Review

Market Overview - WA

WA Market Overview from Vincent Siciliano LJ Hooker Commercial Perth

Q. What are the key market trends occurring throughout 2021 in your region? A. We have seen yields tighten to reflect those being achieved in other markets. The gap was unjustified, and the astute investors took advantage. We have seen greater activity from owner occupiers – from vacant industrial land to strata offices. Our land estates have sold out and the strata office market sales are highlighting a lack of supply. Q. What have been the fundamental drivers of demand amongst buyers? A. Noting how interest rates remain low and those that have traditionally been tenants are seeing lower occupancy costs by buying. Q. Reflecting on recent transactions, what has been the profile of buyers and has this shifted from previous years? A. Owner occupiers have always had a market share. With the cost of money where it is, nowmore than ever they are responsible for more transactions. Investors will continue to be astute and I envisage more interstate investors looking west. Q. What types of assets are most in-demand given the current environment? A. Industrial land | Childcare Centres, Industrial investments, Neighbourhood Shopping Centres

Q. How would evaluate the impact of the past eighteen months in your local market? A. It appears that many businesses need more staff and the closed borders are compounding this issue Q. What are your expectations for the commercial property market over the next twelve months? A. More of the same. Western Australia is in a unique position of being the gateway to Asia and sharing the same time-zone whilst all our miners continue to mine Resources that the world is seeking. However the greatest unknown is when will our borders open and on what condition can we leave and return. Q. Talk us through the most significant deals you have transacted thus far in 2021. As an office, some of our highlights of this year are: Off-market childcare centres totalling $36,510,000 – sold and settled Calleya Town Centre - $5,350,000

10 Industrial lots at Neerabup - $7,970,000 4 Industrial lots at Forrestdale - $2,609,000 87 Allen Road, Forrestdale - $7,100,000 Nedlands/Crawley Portfolio - $12,000,000

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