The commercial property market is generally very healthy at the moment. Demand for properties for purchase is particularly high, while supply is slightly limited. For sellers, there is greater demand for smaller units – around 200-250 sqm – than larger units, which suffer from higher prices. In this regard, there are more properties available to rent than buy in the current climate.
For those looking to let or rent, square meter rates are sitting around $120/sqm. Looking to selling and purchasing, there is evidence of square meter rates sitting at no less than $2400/sqm for industrial property.
Looking to the most popular asset classes at the moment, there is unprecedented demand for retail property, particularly in the Camden area. With a high demand and limited supply, commercial properties in prime trade locations, such as Argyle Street and Murray Street, do not last on the market for long.
In general, the commercial investment market is doing better than other areas of the property market. For example, there is strong evidence to suggest the residential property market is slowing down, while the commercial market is steadily strengthening. With a low supply of commercial properties to buy, prices are very strong for investors. Conversely, there is a higher availability of properties to lease. With a number of developments nearing completion, there is a high percentage of properties being released.
The Camden and Smeaton Grange areas have recently been named the fastest growing regions in the industrial property market across the Sydney region. With the forthcoming airport at Badgery’s Creek, combined with a strong economy, the commercial sector is only set to rise in the months to come.