WA MARKET OVERVIEW
WESTERN AUSTRALIA
WA Market Overview with Cory Dell’Olio
Marketwise, what are you forecasting in 2023 and how will increased lending costs impact various markets? What I have seen in the first half of 2023 is the rising yields in most sectors due to the inflated interest rate rises and the cost of debt. Dealing with buyers and sellers in this current climate has been difficult at times but we believe a strong end to 2023 as there seems to be a little bit more clarity now compared to earlier in the year. What market sectors do you anticipate being most in demand over the next six months? Value add sites seem to be the most in demand to start 2023. With the current market and rising interest rates, most buyers need to be able to find sites that can be repositioned to create significant further value to their purchase. Medical/Life Sciences is also a sector that has continued to see a strong demand. Medical and allied health is one of the most tightly held sectors of the WA market and with limited opportunities and such high demand it has seen yields continue to stay relatively tight compared to the rest of the market. What advise do you have for any prospective developers in the current climate? To have a positive and open mind on upcoming sites, with building costs looking at stabilising and potentially even coming down slightly over the next 12 – 18 months, the near future could provide opportunities to acquire appealing development sites. How have your marketing strategies changed, if at all, over the past 12 months? Continuing to evaluate each property on its own merit and targeting specific buyers via different channels. The biggest change is the social media dominance over the last 5 years and continuing to work with our clients and letting them know of the different options that are available, whilst also considering the cost for your client and making sure we use their funds in the best possible way to create a high level of engagement.
CORY DELL’OLIO Associate Director, Investment Sales Knight Frank
90 – June / July 2023
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