While 2003 may have lacked the wheeling and dealing of previous years, it was a year of consolidation in many market sectors, as Tracey Cook reports.
THE residential sector was the shining star of the property industry, confounding analysts with the continued growth in demand. The commercial sector, on the other hand, showed moderate activity, but was by no means a stand-out performer.
Driven by low interest rates, a poorly performed stock market and the dominance of institutional property holders, the 2003 office market in the Perth CBD continued to be tightly held.
The only major deals for the year were the half sale of Central Park for $150 million to the Perron Group in October, the sale of CGU House for $11.1 million to a foreign investor, and the Commonwealth Bank Building sale, which is currently in due diligence.
Colliers International research manager David Cresp said the CBD office market would continue to be tightly held sector into 2004.This was in part because major CBD properties were increasingly in institutional hands, he said, who were not traditionally eager sellers.