Agents and property managers may soon see a flourish in investor activity in Australia’s commercial market, as low prices and increasing tenant demand offer real opportunities.
According to Centuria Property Funds, investors looking to enter the commercial market should act now to take advantage of positive market conditions not seen for well over a decade.
“While it is near impossible to pick the bottom, or peak of any cycle, valuations in the property market are low, with prices at levels we’ve not seen in 15 years,” Centuria Property Funds chief executive Jason Huljich said.
Mr Huljich said the strong performance of the nation’s mining and resources sectors and high employment figures have led to increased demand for commercial property in certain locations.
“The pre-GFC period of inflated valuations has been corrected. We are now seeing more realistic valuations and falling vacancies, especially in certain areas where demand for quality office space is growing. This is fuelled by local conditions, for example the resources boom, and its knock on effect of greater demand for nearby support services – Brisbane being a case in point.”