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A prominent real estate industry professional has highlighted that record-low interest rates and a supportive federal government are driving significant interest in commercial property assets.
Executive chairman of Raine & Horne Commercial Angus Raine has highlighted that the low interest rate environment is driving significant interest in the commercial property market.
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Mr Raine noted that particularly in Sydney’s Macarthur (Campbelltown) area, “the commercial market is being driven by owner-occupiers who are taking advantage of low interest rates to move into their own premises”.
“In the sub-$5 million market there simply aren’t enough properties to meet demand,” he added.
According to Raine & Horne, Campbelltown properties that were selling for $1,300 per square metre 12 months ago are now commanding $2,000 per square metre.
The agency also said that the commercial market is showing similar robust growth across many other parts of Australia, including in Adelaide where the Torrens Road to River Torrens South Road upgrade project is redefining commercial property opportunities by improving transit flows.
Raine & Horne also pointed out that vacancy rates remain minimal in both Melbourne and Sydney.
In Sydney’s west, Parramatta is experiencing “near-zero” vacancy rates on prime office space as blue chip government tenants including the NSW Department of Education move into the area, according to the real estate agency.
North Sydney’s commercial vacancy rates are heading towards 5.0 per cent — the lowest since 2001.
Newcastle vacancy rates for office and retail space, particularly in smaller size ranges, have also tightened significantly as the city’s microbusinesses begin to grow, and 50 per cent of commercial properties in the sub-$2 million market are selling prior to auction.
