Commercial Property Deals Hit $42.6b Record
November 21 , 2019 | Uncategorized
The latest Cushman & Wakefield figures reveal that commercial property deals hit a record of AU$42.6 billion for the 2019 financial year, including AU$23.1 billion in office property deals. What has been driving those office deals are extremely high occupancy rates in Sydney and Melbourne office markets, which represents constant growth in rents and outstanding asset investment opportunities for investors.
According to a report in The Australian Financial Review, office investment volumes were highest in NSW, which recorded a total of AU$10.2 billion in the 2019 financial year. In Sydney CBD, prime gross effective rents grew 9.1 per cent over the past financial year, much higher than the long-term average, while vacancy declined to 4.1 per cent.
Demand from commercial tenants continues to support the sector while investor demand also remains relatively strong, particularly when compared to the challenges being faced right now in the residential markets.
Source: Australian Financial Review, Sydney Morning Herald