RESEARCH
AUSTRALIAN commercial property sales sunk to an 11-year low in the first quarter of 2023, with higher debt costs and pricing uncertainty putting off both buyers and sellers.
According to MSCI Real Assets’ latest Australia Capital Trends report, transaction volume for the March quarter fell to...
Compared to the first quarter of 2022, which was the quarter on record, transaction volume was down 73%.
The resulted in the deal volume for the last six months sitting over 25% below the average of the last 10 years.
“There are a lot of products on the market at the moment, but pricing has become a real sticking point due to the soaring cost of debt,”...
“Couple this with uncertainty around economic fundamentals, and it’s no surprise that investors have been very subdued.”...
Over the quarter, the industrial, office and retail sector all experienced declines in sales activity exceeding 70%.
Office activity was down 71%, with very few properties trading for over $100 million over the quarter. With CBD office yields increased for...
Retail activity was down 77%, with just $1.5 billion in sales. Large format retail yields were back up to 5.8% from...
Industrial activity was down 82% to $1.1 billion in sales, with yields for warehouses at 5.0%...
The largest sale in the sector was Goodman Group’s acquisition of 2-8 Lanceley Place in NSW for $95 million...
While the hotel sector resisted the challenges facing all others, with a 25% increase in activity and a record-breaking deal in...
“Despite the hotel volume being dominated by one large forward purchase in Sydney, the positive sentiment around the sector following the...