Commercial property investment is not everyone’s cup of tea. It involves a gamut of factors including logical thinking, far-sighted approach, market research, trend analysis and economic considerations, among others. The speculative nature of the real estate market can make investments a risky affair. However, with patience and perseverance, you can acquire what you desire and witness its value grow over the years.
Most high-net-worth individuals own a property portfolio which was earlier filled with residential properties. However, with changing times and burgeoning commercial sector, they have opened up to the idea of milking the right opportunities. For instance, commercial property for sale in Australia became a highly popular real-estate investment option after the housing prices declined last year.
If you too are planning to put your money into an office building, then you must be aware of the most viable locations in the country. Here is a list of the best places to own commercial real estate in Australia.
When it comes to stronger yield and long tenancy periods, Sydney is the place to invest your hard earned money. The high rental yields in the city ensure that your investment becomes a cash-flow positive endeavour. The vacancy rates are at an all-time low since the year 2000. The rising population, strong job growth and increasing demand have brought the vacancy rates down and the rental rates are touching the roof.
The number of A-grade properties has also significantly increased in the CBD region and the average rental rates for offices in the city is higher than ever before which is boosting the confidence of both local and international investors. At the moment both A-grade properties and B-grade ones are considered a sound investment in the CBD and North Sydney.
With many investors spotting lucrative opportunities in the city fringes, locations like Darlinghurst, Surry Hills and Darlington are also being snapped up by buyers who don’t want to purchase properties at sky-high prices. The infrastructure development in rezoning areas surrounding the city will further boost the value of commercial properties in the region. Thus Sydney should be on your list of places to buy the next property in the country. Have a look at a myriad of options available for commercial property for sale in Sydney here
The popularity of Melbourne as one of the hottest destinations for investment can be gauged from the fact that it was ranked at the second place in the APAC region for investment in commercial property in a 2018 survey. The reason behind this is that the city promises strong growth potential and the projections for an increase in rental income in the coming years is working in its favour.
The retail boom has further strengthened the sector and investors are now making adjustments to their properties to leverage this surge in demand by introducing retail elements in office buildings. Flexible office spaces are the latest trend in the metropolis and investors are more than happy to improve space utilisation in their properties. Co-working spaces are the way forward and have made both buying and leasing an attractive offer in Melbourne.
The vacancy rates in the city fringe and the eastern side are below the average percentage and the demand for tenancy is growing proportionately. South Kilda and Southbank are experiencing the lowest vacancy rates and the rent is soaring in North and West part of the city. You can also become a part of this developing market by buying a commercial property for sale in Melbourne here
The face rental growth in Brisbane is expected to reach 14% between 2019 and 2023 and the leasing market conditions are getting better by the day. The high employment growth and stable economic development have buoyed the leasing market. The investor sentiment is positive as capital growth is leading to rental gains.
Both Brisbane metro and CBD areas are brimming with high-growth assets and buyers are timing the property market to make the big purchase. The amplifying interest of buyers is evident from the recent massive transactions of the BOQ House for $250 million and the Barracks in Milton for $162.3 million.
Many new developments are coming up for sale which shows a rise in the supply rates. Some of the new projects are already pre-committed like the A-grade office building in Jubilee which has been acquired by Watpac and Regus. The inner south Brisbane continues to be the most expensive and highly sought-after area for investment. To be a part of this soaring market, look for various options for commercial property for sale in Brisbane here
As the absorption rate went up in Perth, the vacancy rates started falling that enhanced the leasing conditions. Still, there are many vacant office spaces in the city which is increasing competition for tenants in areas other than the CBD and West Perth. The slow economic development of the region has played the role of a dampener along with stricter credit lending policy.
In 2018 many major property transactions were concluded in suburban Perth and CBD areas, such as the Optima Building which was sold for 125.1 million and Workzone West which was acquired for 125.25 million. With improving conditions, the experts are predicting a brighter future for the city as growth rates are looking positive in the coming years and new supply will come into the market. If you wish to become a part of this growth, have a look at a myriad of options for commercial property for sale in Perth by clicking the link given below.
Along with Sydney, Gold Coast is also experiencing the lowest vacancy rates in ten years which has changed the market scenario. The sales figures of commercial property in 2018 marked a positive gain. With limited new supply and the recent infrastructure overhaul for the 2018 Commonwealth Games, Gold Coast is witnessing a surge in leasing activity.
Surfers Paradise is taking the momentum forward with the lowest vacancy rates in the area followed by Robina and Broadbeach which are not far behind. Robina is being viewed as a strong contender for quality office spaces by investors as it is conveniently accessible and has all the required amenities. Many buyers are happy with the ample parking spaces and proximity to retail centres which have changed the perception of Gold Coast being just a holiday destination. To have a look at multipl opportunities for commercial property for sale in Gold Coast, click on the link given below.
The dipping dwelling prices may have shocked many investors, but the growth of commercial real estate for sale in Australia is keeping their hopes afloat. Many are expanding their asset portfolio through the acquisition of the best office spaces in happening urban and suburban areas that promise high yields and significant gains.
Sophie Barrett is an experienced real estate marketing professional with a specialisation in commercial property market. She has a Masters degree in marketing from the esteemed Melbourne Business School and has several property management certificates to her credit. Her shrewd marketing policies and business acumen have led to the most rewarding property deals in the major capital cities of Melbourne, Sydney and Perth. She is a popular name in the real estate market and has been serving the industry for almost two decades now. CommercialProperty2Sell is proud to partner with her for some astute discussions and advice on the booming sector.
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