Commercial property, as an investment class has recently observed a long lapse in capital growth in Sydney’s CBD. However, a dramatic growth in sales and an increase in property value have indicated that the market will fully recover. For example, over 10 years ago a strata office in World Tower or World Square would have been bought for around $9,000-$10,000 per square metre. If the same asset was sold 7-8 years ago the owners would have suffered a loss. Notably, some of them sold for $5,000 per square metre, losing 50% of their investment! No wonder so many people avoid commercial property as an investment class. Fortunately, things have been turning around. Spaces in the same building today are going for more than $10,000 per square metre. Better yet, the increase will continue due to a shortage of supply.
We have a long list of enquirers at the moment looking for small offices between 70-200 square metres. Most of them are owner occupiers and tend to be solicitors, accountants, mortgage brokers or migration agents. Prices for 97-99 Bathurst Street originated around $5,000-$6,000 per square metre around 8 years ago. Today, they have recently reached approximately $12,000 per square metre! There tends to be high demand for 97-99 Bathurst Street (even for spaces not on the market). Thus I recommend that owners of suites in the Bathurst Street building should consider going to market for an easy and attractive return.
Now is the perfect time to sell!
About Author
William Shen – Commercial Sales Manager
William Shen joined the Ray White City South team with a view of cultivating and expanding the agency’s property portfolio in the Asian market, with an emphasis on the Sydney CBD and Chinatown region. He holds a Master of Property Development from the University of New South Wales,and a Master of Business Administration from Macquarie University.
Connect William Shen on 0419 406 645 or william.shen@raywhite.com
Check out his recent sales:
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