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Property Information |
Property InformationMarket UpdateApril– June Quarter, 2010Transaction volume retreated from the record breaking figures of the previous quarter to a solid 141 deals for the April-June quarter. I mentioned in our previous market update that stock levels remained tight and we should see some upwards pressure over the next six months. This has taken traction with a 5% increase across the quarter. We expect this to continue. Land sales continued to be a highlight with 17 transactions totaling $18,511,900 in value. Prime industrial sites are now achieving up to $250m². These volumes and rates indicate a positive market. Interestingly the average $ per m² sale price remained below $1,000m². This is an indicator that vacant buildings must be priced competitively to transact in current conditions. Investment sales increased but were again limited by a lack of supply, the sub 7% yield is due to a number of retail sales. "A Grade" industrial investments are yielding between 7%-8%. There is a volume of money seeking quality investment assets through our office. The ratio of leasing to sales was again steady at 62/38. This is the third consecutive quarter at around this level and as mentioned previously is what is expected in a relatively strong market. The current conditions allow an opportunity to increase rentals off potentially low bases. If you haven't assessed your portfolio lately we welcome your call and would be happy to assist. Ben Cooper |