Raine and Horne Commercial

INSIGHTS SPRING 2018 | 44 WA | Perth Western Australia According to Anthony Vulinovich of Commercial Western Australia, average yields on commercial properties range from 6.25% for retail assets, 6.50% on office property, and as much as 7.25% on industrial assets. These yields, along with property values, are expected to remain stable through to the end of 2018. A recovery in the resource sector is adding impetus to the market, supported by a number of infrastructure developments including Metronet – Perth’s new public transport system, new shopping centre projects at Karrinyup and Innaloo, and various mining projects. Nonetheless, vacancy rates are si ing at 10% for retail, 15% for industrial and rising to 20% for office assets. The majority (80%) of buyers are owner occupiers and in the current climate virtually all sales are conducted via private treaty. Most properties being sold – up to seven out of ten, are new developments, and this is expected to drive a trend of tenants changing over to newer properties. Anthony sees industrial space as the pick of Perth’s commercial market at present owing to safer yields and less price volatility. “ A recovery in the resource sector is adding impetus to the market, supported by a number of infrastructure developments. ”