Brisbane Commercial Property – March 2012 Review
Just like January & February, Brisbane Commercial Property in March has continued to see a large amount of transactions. I can officially confirm we aren’t just witnessing a spike but improved conditions throughout the commercial industrial sector across Brisbane’s south side. My colleagues on the north side have also recorded a strong first quarter.
The appetite for good quality commercial investment property in the sub $3m range is high. I assume many investors are avoiding the share market due to the ongoing volatility and preferring the safer haven of bricks and mortar, once again. Good tenants, with long term leases, bank guarantees and a quality functional property are still being sort after by cashed up investors wanting more then anything, security for their funds. Keep your eyes open on the potential from mainland Chinese investors which should hot up this year.
In recent blogs I spoke about the importance of good solid governance to create confidence in the marketplace. I heard similar sentiment from clients, business owners and prospective buyers leading up to the Queensland state election. I can’t believe how poorly the Queensland ALP listened and connected with voters. They ran a very negative muck racking campaign against the LNP. Saying it back fired is an understatement!
What have we learnt and more importantly what have the two major parties learnt?
- Don’t break promises.
- Have a constructive plan and vision.
- Be positive and stop the mindless muck racking.
Very simple, I hope you’re listening Miss Gillard and Mr Abbott. Congratulations Mr Newman for listening plus your vision and passion for the people of this great state. Just keep your promises.
So what has been happening in both the national and Queensland commercial real estate market?
WA is still the strongest industrial property market, with the state index rising to +7 points (+5 points in Q3), The market in WA is reportedly being supported by rising industrial requirements from mining/resource companies with population growth also contributing to demand from the distribution, importing and services sectors. Conditions also improved in Queensland where the resources sector is also contributing to demand, but the state index remained negative (-12 points). In contrast, the NSW state index fell to -18 points (+3 points in Q3).
Across the country, 38% of commercial property auctions cleared over the week ending 16 March 2012. Over recent weeks, the auction clearance rate appears to have settled at slightly lower levels than what was recorded in late 2011. Over the most recent four weeks 92 commercial properties have sold at auction with a total value of $77.107 million.
*RP Data 2012