Raine and Horne Commercial

INSIGHTS SPRING 2018 | 38 VIC | Victoria Jason Beveridge of Commercial Victoria says investors are still seeking commercial properties and yields are holding up well. He says yields are as low as 4.0-4.5% depending on the type of asset and location, however most of his clients are seeking a yield in the order of 6.0-7.0%. Retail yields can be below 4.0% in strip locations in premium shopping precincts such as Chapel Street. The commercial market in Victoria is receiving an abundance of support via state government infrastructure spending. In fact, the 2018/19 state Budget allocated almost $2.2 billion to upgrading roads in Melbourne’s northern and south-eastern suburbs. The $110 million North East Link project will complete Melbourne’s freeway network, and the Budget also flagged a $712 million investment in the second stage of the Monash Freeway upgrade. These transport links are defining some of the more desirable commercial assets. According to Jason, small industrial units priced from $350,000 to $650,000 are experiencing strong demand, especially when located near transport. Nonetheless, he adds, “Even in the outer west we are seeing decent enquiries come through for larger sheds.” Victoria “ The commercial market in Victoria is receiving an abundance of support via state government infrastructure spending. ”