Investors look to suburbs for stability!

While the full impact of the COVID-19 pandemic on the commercial property market may not yet be clear, it's pleasing to see that capital values for sub-$10m assets across Sydney's suburban North Shore markets have held steady and in some cases improved, particularly in the six months to July 2020.

At CI we have witnessed a sustained demand for investments across the commercial, retail and mixed-use asset classes in this price range as investors seek diverse income streams. While buyer interest for these types of properties has consistently been a strong performer in market, we have seen an increase in demand throughout the pandemic.

This has manifested itself in the form of owner-occupiers looking for additional liquidity in the form of sale-and-leaseback agreements, local builders and developers seeking to increase their work?ow and construction pipelines, and private investors looking for alternative investment ventures. Adding to this are the low interest rates, bank saving rates and bond yields which are also stimulating demand for this sector across the North Shore.

We are proud to have achieved great results for our clients in this space, and the few recent sales below demonstrating this demand in market.

? 216 - 218 Victoria Avenue, Chatswood - Circa $8.000.000 – Over 400 enquiries, record yield.

? 343 Pacific Highway, North Sydney - $7,500,000 – 857sqm + 12 cars. Owner Occupier.

? 539 – 541 Paci?c Highway, Artarmon - $2,920,000.00 – 740sqm of land. 15 offers received.

? 129 Willoughby Road, Crows Nest - $3,750,000.00 – 392sqm of land. 25 offers received.

? 969 – 973 Paci?c Highway, Pymble - $1,925,000.00 – Two level retail/office building with 5 tenants returning $100,000 + GST Net. This represents a net passing yield of 5.2%.

Please feel free to contact me on +61 408 891 376 should you wish to discuss this trend further, the current state of the North Shore market or potential investment opportunities.

You can also learn more in CI's latest North Shore Office Market Update, here:

https://www.ciaustralia.com.au/media/3224/north-sydney-office-market-report_september-2020.pdf