Commercial property transaction volumes sub $50 million: Ray White
As we enter reduced restriction levels as our stages of lockdown change, this is a positive sign for the economy that we are starting to resume business activities, albeit in a new way.
During this time, Ray White Commercial has been active in listing, selling and leasing commercial assets with many investors, developers and business owners keen to continue to plan for the future.
The way which we do business may have changed but it has also resulted in the advancement of technologies which will be now more accepted such as online auctions, virtual tours etc.
With record low interest rates and banks now more mobilized to complete transactions, we continue to see high levels of enquiries and buyers with finance ready with the ability to transact.
Sales activity for this week remains at a similar level to last week recording over $114 million across 32 transactions.
This week we have seen the average sale price of over $3.5 million well ahead of last week which featured a higher volume of smaller sales with an average of just $2.2 million.
Close to $50 million of these sales were transacted in Queensland, spread across all asset classes with retail and development site activity greater than traditional industrial assets while medical related properties also sold.
We have seen a number of medical facilities change hands this year and a growing number of enquiries in this sector may see it a more favourable investment option in a post COVID-19 economy.
NSW sales were limited but development site activity together with a number of smaller regional assets, while WA featured prominently this week with a number of industrial sales.
Over the last six weeks, Ray White Commercial has recorded over $1.17 billion in Australian commercial transactions in the sub $50 million asset class.
The reduced sentiment due to the current COVID-19 crisis not significantly dampening activity for private investor and developer purchasers while a number of institutional buyers have also transacted.
Over this short period the spread of assets which have sold highlight the ongoing demand for a range of stock suggesting future confidence across all asset classes despite the current economic uncertainty.
Industrial assets contribute a quarter of all sales while development sites increase their foothold representing 22.13 per cent of turnover. The office and retail asset classes which were anticipated to be adversely affected by the pandemic has accounted close to 38 per cent of all turnover demonstrating longer term confidence of this class. Encouragingly, uses such as hotels, aged care, child care and student housing have all seen robust investment activity.