Commercial property transactions to reach second highest in decade: CBRE

Australia’s commercial property market is expected to see transaction activity hit its second highest annual total in a decade, according to CBRE’s sales data for quarter two. During this period, $6.1 billion of sales were recorded.

The sales data recorded includes all office, retail and industrial sales over $5 million, and saw the first and second quarters of the year record approximately $10.5 billion of property transactions.

Foreign investment into the commercial market has remained bullish - $2.6 billion of the sales transacting in the three months to financial year end were foreign purchases. This was 27% of sales over the quarters.

This is 10% below last year’s record, but still tracking high, explained CBRE national director, capital markets, Josh Cullen.

“Whilst activity is slightly down, this follows a record year and demand for core assets in the Australian market remains extremely strong, as we are still very attractive from a global perspective,” said Cullen.

This has foreign investors continuing to chase core assets, said CBRE senior director, international investments, Michael Andrews.

“With low interest rates and low returns in offshore markets, Australia continues to be a sought after destination for offshore investors,” Andrews said.

The industrial market has been a particular standout, with close to $900 million in sales transacted, up from the same period in 3013 when $400 million of transactions were recorded.

ROUNDUP

SYDNEY: 10% HIGHER IN Q2

Melbourne: 22% HIGHER IN Q2

BRISBANE: 33% LOWER IN Q2