Parramatta Blog

Sydney has always been at the forefront of the Australian commercial office market because of its diversified economy and exceptional commercial activity. In the Prime Global Rental Index, Sydney was the only Australian city to appear in the top 10 cities, at number 5, with 7.2 percent growth.

 The COVID-19 lockdown, however, caused mayhem in the corporate world and the pandemic severely affected the capital city. There were significant losses for many small and medium-sized business, and many professionals lost their employment. The increased vacancy rate in the CBD, which grew by a significant margin from 5.6 percent to 8.6 percent in 2020, was indicative of the pandemic's detrimental effects. However, the tenacious market began to show indications of recovery, which was good news for the coming year.

 In the pandemic-affected world, many companies chose to work from home directly causing a large increase in vacant commercial space. Although businesses shifting to work remotely, there were still numerous businesses that require physical locations to function such as manufacturing plants, banks, supermarkets, healthcare facilities, media offices, suppliers of basic necessities etc.

 Sydney is still one of the best places to invest in commercial property with the returning of international purchasers investing in the nation's most lucrative market. The market is bound to expand as the number of COVID-19 cases decline and city limitations loosen. There has been a flow of deals that are now being processed due to postposing during the lockdown.

 The recovery rate can be inferred from the fact that demand for real estate has surged after plummeting in the second quarter of 2020. If the pandemic is contained worldwide, NSW will continue to grow along with its real estate market. The interest of both purchasers and tenants in commercial real estate has increased as a result of the consistent rental yield and incentives shifting to the 15 percent to 20 percent range. If you're looking for investment possibilities, Sydney is home to numerous excellent options that promise substantial long-term gains.

 *Written by Jayden Ayoub | Commercial Sales & Leasing