Developers are pushing ahead with plans for new projects, hoping recent government initiatives aimed at stimulating the sector will help cushion any further COVID and economic blows.
Recent sales in Perth's commercial property market show appetite remains for well-located assets with strong leasing profiles, but activity levels are still well down historically as the shadow of rising vacancies looms large over the city.
Mining giant Rio Tinto appears to have put the kibosh on speculation it will anchor a major new commercial office tower at Elizabeth Quay, extending its lease at Central Park until 2030.
Listed development company Finbar Group has sold Monadelphous Group's headquarters, the Gateway Building in Victoria Park, for $72.8 million, the latest in a growing string of assets bought by Sing
Monadelphous Group's Albany Highway headquarters has been put up for sale, with selling agent Colliers International expecting the building to attract an offer exceeding $75 million.
Perth's hotel development boom is continuing to gather steam, with plans submitted for a $30 million, 15-storey hotel to be built at 100 James Street in Northbridge.
Lack of supply of large, well-located office and retail assets in Perth's commercial property market has resulted in the total value of sales falling to less than half of what they were 12 months ago.
Rising vacancies and falling rents in Perth's CBD office market are putting tenants in prime position to score favourable deals, while the conditions could also result in potential bargains for institutional investors.
Investor confidence and demand for business premises will generate opportunities in the property sector in 2014, but it won't be in the traditional high transaction area of office leasing.
