Average Sydney strata office sale price breaks $1.5 million: Ray White

Average Sydney strata office sale price breaks $1.5 million: Ray White
Average Sydney strata office sale price breaks $1.5 million: Ray White

The average Sydney strata office sale price is now over $1.5 million for the first time ever, according to Ray White’s upcoming Between the Lines commercial report. 

The research showed limited supply available for sale had increased competition and been instrumental in growing capital values into 2018, after stand-out increases in 2016 and 2017.

In 2018 $151.93 million dollars worth of strata office sales took place across 100 transactions.
 
Ray White’s Head of Research Vanessa Rader said “As vacancy levels continue to maintain a low rate across the broader Sydney CBD market, rents remain expensive, which has seen more occupiers looking to shelter from further increases."
 
“On a per square metre basis, the overall capital value saw an increase of 24.66 per cent compared to 2017's annual results, which is an average of $12,144 sqm (on an adjusted basis), more than doubling the value achieved in 2014."

“In 2018 we've seen a greater volume of multiple purchases, where buyers are seeking to amalgamate adjoining lots. But despite this, the average sale size remains low at 124sq m, slightly up on 2017 result of 117 sqm."
 
“Turnover this period has been its highest in the Core sector, with the bulk of transactions occurring in quality strata buildings along Hunter and Pitt Streets, with many achieving new highs in capital value," she added.

Activity in the Macquarie and Elizabeth Street precinct increased this year.
 
Ms Rader stated, “The Core sector recorded $71.67M, followed by Midtown with $44.06M and Western Corridor $23.49M changing hands, while the Southern precinct, due to its limited stock, has recorded just $9.79M for the full 2018 calendar year.”
 
She added, considering the annual capital values by precinct, 2018 saw outstanding growth across all precincts, adding to the last five years where value increases had been substantial.
 
“Core continues to be the most expensive precinct which has increased to $12,877/sqm, up 14.36 per cent over the last year, followed by Midtown up 19.98% to $11,768/sqm,”
 
“A highlight's in the Southern precinct, achieving over $10,000/sqm for the first time. Over a five-year period, the growth in this segment of the market has been remarkable, particularly given the prolonged period where limited change occurred in values for this asset class.
 
“Overall, the Sydney CBD strata market has yielded annual growth of 27.69 per cent per annum, the most stable growth rate being in the Core sector, up 26.81 per cent per annum over this period,” she concluded.

Average Sydney strata office sale price breaks <img src=

Ray White Commercial NSW’s Sales Director Strata Sales Christian Minards said the sale of King Street Wharf waterfront office at Suite 505/35 Lime Street (pictured above & title) was an example of the markets strength.

The sale price is believed to be around $2.6M to $2.7M.
 
Mr Minards said the sale represented a rate per sqm for the office component of over $14,630psqm, a record result for the development.
 
“The development of Barangaroo has created a surge in sale prices at King Street Wharf, which until recently have been priced at around $10,000psqm. We’re now seeing prices climbing to over $14,500psqm,” he said.
 
“The lack of supply of quality strata offices and strong demand from buyers is continuing to drive strata office prices."
 
“Suite 505 presented a highly sought-after opportunity within the tightly held King Street Wharf precinct and the opportunity attracted plenty of interest.”

Tags: 
Office Sales

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