27/06/2006 - 22:00

Strong year for sales across the spectrum

27/06/2006 - 22:00


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Perth’s property sector has achieved solid sales in all major markets during the past financial year, backed by a strong state resource sector and greater investor confidence.

Strong year for sales across the spectrum

Perth’s property sector has achieved solid sales in all major markets during the past financial year, backed by a strong state resource sector and greater investor confidence.

In the western suburbs, the state sales record for a single residential property was broken twice in May with the $12.25 million sale of a Jutland Parade mansion in Dalkeith, followed by a $15 million sale of an English-style manor house at Bindaring Parade, Claremont.

The previous residential record was set in April last year when Indonesian investment company Allset, linked to billionaire businessman Rachman Hallim, purchased a modest 1920s home on the Esplanade at South Perth, with a view to developing the high density zoned block into apartments.

Mack Hall and Associates managing director Mack Hall was the agent behind the $15 million sale this year and said the record would not last another six months.

Mr Hall said three local buyers were already waiting to make offers of more than $15 million for prime western suburbs riverside property.

He expected records to be broken again inside the next year with sales of more than $20 million.

Record prices have also been paid in Perth’s industrial market, with the largest deal in 2006 made by Savills for a reported $31 million in April.

An investment syndicate connected with investment advisers SAS Global bought the 63 hectares of vacant industrial land in the Forrestdale Business Park and intends to subdivide it.

Savills industrial divisional director Max Jones brokered the deal and explained that Western Australia had an acute shortage of serviced land and the rare sub-divisions, once released, were selling almost immediately at inflated prices.

Shopping centres were also in demand and the deal involving Rockingham City Shopping Centre topped the field when existing owners decided to up their stake in the centre, paying $43.7 million for a 20.8 per cent share in July last year.

In other deals, EG Funds Management acquired the former Myer MegaMart store in Perth for $38.6 million in December 2005, and also the Woolstores shopping Centre in Fremantle for $38 million in July 2005.

Perth’s hotel market surprised many over the past 12 months when five city hotels sold to Singaporean, Australian and New Zealand investors.

The sale of the 120-room Commodore Hotel in March was the biggest at $17.5 million, in a sale to the Travelodge Group.

In the same month, the 171-room Ambassador Hotel sold for $12.8 million to the Singapore-owned Goodearth Hotel and Resorts Group, and the 68-room New Esplanade Hotel sold to an undisclosed buyer for a price to be announced next week.

Jones Lang LaSalle Hotels vice-president of investment sales, Mark Durran, said while Perth had suffered from oversupply in recent years, investor interest in Perth hotels was now strong, particularly from the east coast.

“Investors are starting to take notice on the back of renewed improvement in hotel trading and room rate increases in the city,” he told WA Business News.

In one of the biggest commercial transactions in the past 12 months, Ralph Sarich’s Cape Bouvard Investments sold Wesfarmers House at 40 The Esplanade for $47.5 million to Melbourne-based funds manager SAITeysMcMahon in November.

Among other significant transactions, renowned office investor, Hossean Pourzand, bought the Clough building at 251 St Georges Terrace for $30.8 million in October, adding to his portfolio of prime CBD property.


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