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Commercial sales still flare on the CBD periphery

Commercial sales activity is still focused on peripheral CBD build-ings in Perth.

Latest sales include 445 Hay Street, in East Perth for $1.3 million. The property comprises 6,797 square metres with 21 car bays on a site of 1,549sqm.

The former Grand Central Hotel at 379 Wellington Street, with about 1,300sqm on a site of 506sqm, sold for $1.4 million with approved uses under the current zoning for offices, accommodation and coffee shop.

Retail turnover for the March quarter was up 4.8 per cent in comparison to the same period last year, according to Herron Todd White director Garrick Smith.

He said the amount of new space to be released on the market over the next twelve months will provide a competitive scenario resulting in a stable outlook for rental growth.

Landcorp divested its half share in the Lakeside Joondalup Shopping Centre for $58.5 million and the Victorian Emergency Services Superannuation Board paid $85 million for a 50 per cent share in the Rockingham City Shopping Centre, comprising 46,444sqm. The sale included an adjoining site of 6.9 hectares for future expansion at $7.428 million.

24 Bayview Terrace, Claremont sold for $2.105 million, reflecting a yield of 6.85 per cent on passing income on a 15 year lease expiring in 2002 to Sportsgirl. Two buildings at 914-918 Hay Street, Perth, with 2,704sqm on a site of 1,623sqm sold for $2.45 million.

Mr Smith said strong economic conditions in WA have not yet inter-faced with the industrial market, with rental and capital growth for the sector remaining stable.

“The lack of supply has stalled the underlying strength of this sector, with strong competition for properties offered with long term state or national tenancies resulting in yields of between 9-9.5 per cent,” he said.

“The medium term outlook, however is positive. Sustained economic growth and the recovery in the Asian market, where increas-ing demand for resources is likely to occur, will provide a backdrop for growth over the next 2-5 years”.

Mr Smith said the residential sector shows steady growth which is set to continue and may be stimulated by anticipated increases in building costs with the introduction of the GST.

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