Perth Commercial & Industrial Market Update – October 2019

September 23, 2019

2019 has proven to be a tumultuous year for the West Australian property market with the FYQ4 being no exception, defined by periods full of activity followed by periods dormancy. The election has not catapulted us into a period of unprecedented growth as anticipated but the outlook still remains positive.

Even though there are periods of inactivity transactions are taking place, particularly from businesses looking at new builds which have competitive rents. The high supply of Industrial Land in all of Perth’s Corridors has been followed by a subsequent high supply of Brand New Industrial Buildings which tenants and owner occupiers are taking full advantage of. Brand new Buildings coupled with reasonable incentives has meant that A-Grade stock can be under contract well before practical completion. This is applicable to both sales and leasing transactions.

Another market which has remained strong this financial year is the market for tenanted investments. A lack of supply for Good Quality Investments means the Investments that do enter the marketplace receive notable enquiry and transact within a favourable amount of time. Buyers are looking for longer lease terms in particular as they mitigate their risk.

The owner occupier market is tougher with vacant possession sales being on the market longer as the supply of vacant buildings is greater. The Banks relaxed approach to lending has assisted the Owner Occupier market in assisting in finance for business’s and owner occupiers.

Stefan Quaresimin – MLV Real Estate