Same again for Canberra commercial property in 2017: Colliers

Same again for Canberra commercial property in 2017: Colliers
Staff ReporterDecember 7, 2020

Commercial property clearance rates in Canberra fell by 11 percent in 2016 with similar conditions expected for 2017 according to Colliers International.

Only four properties above $10 million sold at auction last year in Canberra last year. All were residential development sites auctioned on behalf of the ACT Government’s Land Development Agency (LDA).

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Dominic Aungles, Valuer and Analyst at Colliers International said, 2017 market dynamics are already looking positive with five LDA development sites selling at auction last week for a total of $25.44 million and seven more commercial auctions scheduled to occur before end of the first quarter.

“The LDA is again expected to play a significant role in the ACT auction market, with a number of key development sites coming to market through 2017 and 2018,” he said.

"We expect investment properties under $5 million to remain popular this year.

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“Mum and dad investors are likely to continue to seek out well-leased smaller assets, looking to gain stronger returns than typically afforded in the residential property market.

“Small commercial properties with secure, long-term leases are expected to be extremely popular as investors look for secure yields with rental growth. Whereas vacant properties, especially in areas such as Fyshwick, which currently have a soft leasing market, are expected to be exclusively the domain of owner-occupiers as investors look for more secure income streams in other markets."

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