Newcastle Expert Leads Commercial Property Market Seminar
Industrial vacancy rates have fallen to the lowest levels in four years.
The resurgence of coal and subsequent spending by coal mines is driving the commercial market across Newcastle and the Hunter Valley.
- Industrial vacancy rates have fallen to the lowest levels in four years, currently 6.3%.
- In the six months to July 2017, 30,000 square metres of industrial floor space was leased or sold, reflecting job growth in the region’s industrial sector
- Raine & Horne’s Commercial Insights Report, featuring expert views on the property market across Australia, is available to download.
Newcastle, 15 November 2017: Newcastle’s leading local commercial property expert – Steven Dick of Raine & Horne Commercial Newcastle, joined other industry specialists, including Angus Raine, Executive Chairman of Raine & Horne Group at Sydney’s Westin Hotel on 9 November, 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 Hunter market, Mr Dick said the resurgence of coal and subsequent spending by coal mines is driving the commercial market across Newcastle and the Hunter Valley.
In Newcastle, industrial vacancy rates have fallen to the lowest levels in four years, currently 6.3%. This fall reflects the leasing, or sale, of 30,000 square metres of industrial floor space in the six months to July 2017 and correlates with job growth in the region’s industrial sector. In Carrington for instance, the vacancy rate has plunged to 3.8% down from 15.3% in January.
Also driving the market, is the growing number of businesses seeking to own their premises. The protracted low interest rate environment means it is often cheaper to pay mortgage interest than to lease a building.
Low interest rates are also influencing retirees seeking more income from their portfolio to buy into industrial and commercial assets, noted Mr Dick. “Retirees are buying leased investment properties for yields of 5.8% - 8.0%,” he said.
In the current market Mr Dick says commercial office assets on the fringe of Newcastle are especially attractive due to the disruption being caused by Newcastle Light Rail construction, which runs from Interchange at Wickham to Pacific Park in Newcastle East.
To download a copy of Raine & Horne Commercial’s latest property market report covering Newcastle, and Australia as a whole, visit http://www.imags.com.au/rh_commercial_insights/.
For further media information contact:
Steve Dick, Director, Raine & Horne Commercial Newcastle on 0425 302 771