50 | Insights H1 2025 According to Simon Winter of Business Sales SA, business sales are remarkably strong and will remain that way while interest rates are stable. Simon says, “High interest rates ensure investors have a sharper focus on returns and managing their cash flow. Business sales are always the greatest when the lack of return makes investment properties less attractive.” The market suggests that the Reserve Bank may reduce rates in February or April. While a 0.25% rate reduction is likely to attract the investment market’s attention, it will not significantly change its behaviour because investors will want to see what happens next. The trigger point, Simon believes, will come if there is an additional reduction later in 2025. If this occurs, it is likely to accelerate the property market and negatively impact business sales. Commercial sales have remained strong through the current period of higher interest rates, and tenancies have remained stable over the same period. Interestingly, rental yields have remained relatively constant, and there is evidence that they have disconnected from interest rates as demand pushes values higher. As a result, rents are increasing but not as fast as property values. Simon Winter simon.winter@bsa.rh.com.au Business Sales For more information, contact: Price Confidential Keith Sand and Metal, Stirling Road, Keith Recent Notable Transactions SOLD Price Confidential Jagger Fine Foods, Gouger Street, Adelaide SOLD
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