Investors and owner occupiers are driving renewed interest in the South Sydney strata market, according to CB Richard Ellis (CBRE).
An analysis by CB Richard Ellis found that strata prices have, in some cases, returned to pre-GFC levels. CBRE’s market analysis highlighted particularly strong activity at the smaller end of the market for strata units of less than 500 square metres.
A 130 square metre unit at Alexandria was recently sold for $450,000, reflecting a healthy rate per square metre of $3,460.
CBRE South Sydney strata industrial specialist Viktor Desovski said much of the recent strata activity has been driven by owner occupiers, seeking to accommodate future business growth requirements.
“The South Sydney industrial strata market is showing clear signs of recovery with far shorter periods required to lease or sell vacant properties,” Mr Desovski said.
Mr Desovski also said while the recent downturn weakened business confidence and reduced the value of strata properties, businesses and investors are now moving to capitalise on attractive buying opportunities.
“This is helping to underpin an improvement in strata values.”