Raine and Horne Commercial

NSW - Bondi Junction Michael Buium of Commercial Bondi Junction says yields in Sydney’s east are around 4% for retail property, 3.5% for industrial space and 5.5% for office property. Yields on retail assets are expected to stay the same through 2021, while Michael is expecting a rise in industrial yields, and a possible softening of yields for office space. According to Michael, the market is being driven by investors and owner occupiers, particularly in the industrial property sector. The retail property market in Sydney’s east is bucking the trend of many other regions. Michael observes, “The retail market is strong with very little stock, and we are seeing a good level of enquiries from buyers.” As a guide to the health of the market, a rundown vacant shop plus residence located at 318 Bronte Road, Waverley recently sold for over $1.9 million. The property features a land size of 217sqm including two car spaces, and a floorspace of 178sqm. It’s a similar picture in the industrial property market. Michael says, “Buyer inquiry levels are high, reflecting increased interest in industrial assets, but we are seeing low levels of stock coming onto the market.” 09 - Michael Buium michael.buium@rhc.com.au