THE PROPERTY DEVELOPMENT REVIEW
Reflecting on recent transactions, what has been the profile of buyers and has this shifted from previous years? We have seen increased participation levels from east coast intuitional buyers and syndicators. East coast buyers agents have been extremely active in the Perth market who are acting on behalf of high net worth individuals. The Perth market has significant appeal due to the higher investment yields and the strong and stable local economy. What types of assets are most in-demand given the current environment? There is strong demand across all industrial product lines. Investment properties with Long WALE’s are in hot demand with prime yields ranging between 5% - 6%. Industrial land is highly sought after by developers seeking to replenish or build their land banks to accommodate tenant demand. Owner Occupiers are also active attempting to secure vacant freehold property to satisfy their requirement for increased floor space.
What are your expectations for the commercial property market over the next twelve months? We expect the industrial market to continue to be strong over the next 2 years. The recent spate of interest rate hikes has not caused a slow down on the record levels of sales and leasing activity and we expect this trend to continue provided there are not too many more rate rises. Demand for leasehold space will continue to exceed supply and we foresee further rental growth. Realmark Commercial had an all time record year and has doubled its revenue over the past 2 years. We have recruited more staff to meet the increased transactional volumes and are embarking on a growth strategy. We are very aware that the real estate market is a cycle, always has been and always will be and although we are planning for the best we will also be prepared for any downturn.
August / September – 101
Powered by FlippingBook