East coast buyers are snapping up Perth commercial property assets in a bid to find value they are struggling to find in Sydney and Melbourne, according to an article by Fairfax’s Commercial Real Estate.
A spokesperson from the Real Estate Institute of Western Australia told Fairfax that increased interest from buyers from the east coast “in all commercial sectors was due to the belief the Perth market was in the bottom of its economic cycle. At the same time, Shane Oliver, Chief Economist, AMP Capital added that unlisted commercial property and infrastructure are still likely to benefit from investors continuing “search for yield”.
Raine & Horne Commercial WA Director Anthony Vulinovich told Fairfax there had been broad investor interest, from small self-managed super funds looking at property worth less than $2 million, to larger trusts looking at significant large assets and portfolios. “Any property with a lease term of greater than four years is extremely attractive especially the more modern premises. Generally speaking the sub-$3 million market is the most active given the greater amount of potential buyers,” he said.