North Sydney expert leads national commercial property market seminar
North Sydney market to experience gains of 15% for FY2017.
- Commercial property in North Sydney has seen significant price growth with values expected to grow by 15% for the full 12 months by the end of 2017.
- Yields are as high as 8.0% for industrial properties.
- Across the North Shore, demand for commercial property is likely to increase, reflecting a crossover of investors from residential to commercial assets.
- The Artarmon industrial area on the residential fringe locations offers good prospects.
- Raine & Horne’s Commercial Insights Report, featuring expert views on the property market across Australia, is available to download.
North Sydney, 17 November 2017: Early November saw North Sydney’s leading local commercial property expert – Jay Sheffield of Raine & Horne Commercial North Sydney, join other industry specialists at Sydney’s Westin Hotel, to share their views on commercial property with Ray Hadley, OAM, broadcaster on Radio 2GB Sydney.
The event, which coincided with the release of Raine & Horne’s Commercial Insights Report, attracted a large media contingent as well as a broad spectrum of commercial property investors from across New South Wales.
In reviewing the state of the North Sydney market, Mr Sheffield noted commercial property has seen significant price growth with values expected to grow by 15% for the full 12 months by the end of 2017.
At present the North Sydney commercial property market is generating yields of 4.0-5.0% for retail properties, 6.0-8.0% for industrial properties and 5.0-6.0% for office properties.
Across the North Shore, demand for commercial property is likely to increase particularly among investors. This reflects the crossover of investors from residential to commercial assets.
Mr Sheffield said, “Low interest rates are expected to continue driving activity among owner occupiers and investors, who are exploring commercial property as a potential investment vehicle. This is increasing our buyer pool and seeing prices increase as well”.
The tightening of bank lending criteria plus changes to superannuation rules regarding limits on contributions and maximum tax-friendly holdings, has the potential to impact the current level of enquiry and transaction numbers from SMSF buyers. To date however, this buyer group remains strong.
Mr Sheffield believes the Artarmon industrial area on the residential fringe locations offers good prospects. The potential for rezoning is creating possibilities of “a significant capital uplift”, and he adds, “The tightly held nature of this precinct coupled with demand from industrial tenants will support good cash flow”.
To download a copy of Raine & Horne Commercial’s latest property market report covering North Sydney, and Australia as a whole, visit http://www.imags.com.au/rh_commercial_insights/.
For further media information contact:
Jay Sheffield, Co-Principal Raine & Horne Commercial North Sydney on 0412 964 823