Market Overview - WA
WA Market Overview fromStephen Harrison RayWhite Commercial WA
Q. How would evaluate the impact of the past eighteen months in your local market? A. For WA economic impact of the last 18 months has been overall very positive. Sentiment is high, business is buoyant and WA has more than recovered well and is seen as a safe invest- ment to foreign and interstate buyers. (I hasten to add the social and health impacts have been very negative and take priority). Q. What are your expectations for the commercial property market over the next twelve months? A. I’d expect that demand to increase across all sectors as borders open. Q. Talk us through the most significant deals you have trans- acted thus far in 2021. A. 210Wanneroo Road, Madely - Medical centre sold for $9,744,000 representing a 6% passing yield 241 Lesmurdie Road, Lesmurdie – Local shopping centre sold for $4,150,000 representing a 6.4% passing yield 443 Stirling Highway, Cottesloe – Development site sold for $3,800,000, will be developed to luxury town houses 206 Adelaide Terrace, East Perth – CBD development site sold for $3,065,000 236 Main Street, Osborne Park – Strip shops sold for $2,800,000
Q. What are the key market trends occurring throughout 2021 in your region? A. We’ve seen increased demand and yields tighten on
investment stock across all asset classes. Industrial demand has increased significantly.
There has been more activity surrounding development sites, although sales are still price sensitive due to construction costs.
Q. What have the been the fundamental drivers of demand amongst buyers? A. Low borrowing cost help significantly, and a desire for safe assets to park money. Q. Reflecting on recent transactions, what has been the profile of buyers and has this shifted from previous years? A. Largely same buyer profile just increased demand. If anything perhaps more activity from high net worth private investors. Also a significant increase in interstate demand. Q. What types of assets are most in-demand given the current environment? A. For investors medical is in very high demand, but also really any secure income asset with a reasonable WALE. Owner occupiers are pushing demand strongly in the industrial sector.
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