Raine and Horne Commercial

NSW - Inner West/South Sydney Luke Smith of Commercial Inner West/South Sydney says the market is strong across the board, with yields of around 3-4% for freehold retail property (4-4.5% for strata), 3.5-4% for industrial assets and 4% for office space. “Owner occupiers are dominant in the industrial market, which is low on supply in the Inner West and South Sydney,” says Luke. “This has seen some of our buyers move to regions slightly further out, such as St George and Canterbury-Bankstown to secure property.” “We are seeing a weak leasing market in retail – though a strong sales market if the asset provides an attractive upside or secure lease. Industrial property is very strong, and in some areas we’ve seen capital growth of 20%-plus over the past year,” adds Luke. Indicating the strength of the market, Luke’s team secured the sale of a severely rundown Inner West property for $771,000 over the reserve. This followed the sale at auction of 47-49 Chalder Street, Marrickville for $3.971 million – $771,000 above the reserve. 13 - Luke Smith lsmith@rhcss.com.au