Australian Commercial Property Sales Rise in First Quarter

Posted on 9 April, 2013 by Jodee Redmond

Approximately $3.5 billion in commercial property priced at $5 million and above was sold in the first quarter of the year in Australia, according to figures released by CBRE. A-REITs are returning to the market, in a sign that the market is off to a healthy start in 2013.

Perth central business district across Swan River

This figure represents a 15 per cent increase compared to the number of transactions that closed in the same period last year, according to Stephen McNabb, CBRE’s head of research for Australia.

Domestic investors made their presence felt in the quarter, with the level of properties being bought by locals increasing by one-third over the same time last year. Foreign investor activity was down by 31 per cent during the three-month period.

CBRE’s national director of capital markets, Josh Cullen, stated that the recent of level activity in domestic REITs seeking core investments across all property sectors was a good sign for this year.

He said, “In the past week alone we have received in excess of $4.5 billion worth of offers with the closure of sales campaigns for Raine Square in Perth and the GE Core portfolio.

“The local REIT’s are well positioned with both balance sheet and wholesale capacity to take advantage of quality offerings in the market place.

“Leveraging has reduced to around 26 per cent from a peak of circa 40 per cent, which would imply funding capacity of $6 billion if leverage moved back to a still conservative level of around 32 per cent.”

Cullen pointed out that one issue was the lack of quality stock available on the market. The inventory shortage was expected to result in “cap rate compression for core assets.”

Approximately $14.3 billion in commercial sales have been recorded for the 12 month period up to March 27. This is a one per cent increase over the $14.2 billion in sales recorded in the 12 months ending in March of 2012.

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Posts

Aldi’s Expansion Plan

British Steel on the verge of collapse with over 20,000 jobs at risk

Paris watches as flames engulf one of France’s most famous landmarks

Debenhams on the brink of administration as board reject Ashley’s bid

Emmanuel Macron pushes for a new Europe with European Parliament elections on the horizon

Brexit impacts property market

Brexit uncertainty impacts the property market


Creative Christmas window displays

Toronto downtown skyscrapers

Brief history of skyscrapers

Savvy promotions attract early Christmas sales for retailers

Are savvy promotions attracting Christmas sales for retail stores?

Greenfield developments

Greenfield developments: The facts

facts about converting chapels churches

Things to consider when investing in church or chapel conversions

Lincoln Castle 1068

Exploring Lincoln Castle’s Georgian and Victorian Prison

the leopard inn Burslem

Facts about The Leopard Inn, Stoke-on-Trent

ancient high house Stafford

The majestic Ancient High House in Stafford

retro video game arcades

Retro video game arcades: The comeback

industrial style offices

How to achieve an industrial inspired office