Buyers are becoming increasingly confident in commercial property in the Illawarra region according to a report from Ray White Commercial.
According to the June Between the Lines – Wollongong
Industrial Market (sub $5m) report, investment in commercial properties valued below $5 million in the Illawarra has returned to levels not seen since before
Over the past four years sales in the sub $5 million industrial market across all local government areas (LGA) in the Illawarra has averaged $75 million.
More than $76.8 million has been invested in 2014, with 64% ($49.3 million) of that having been invested in the Wollonong LGA.
Ray White Commercial head of research Vanessa Rader said properties were proving to be popular with owner-occupiers and investors.
“These properties have been well received by owner occupier businesses together with local investors looking to diversify from residential assets which are achieving a strong yield,” Ms Radersaid.
“However, the investor market – either self-managed superannuation funds or private investors – are seeking quality assets with a strong lease covenant”
Ms Vader said the Wollongong suburbs of Coniston
were seeing the highest volume of sales.
Ray White Commercial NSW (Illawarra) director Ben Mostyn said even more sales were expected later this year as conditions become more favourable.
“The expectation is that further sales will filter through during the year, particularly given the improved confidence and business conditions as well as the record low interest rate environment,” Mostyn said.
“Manufacturing has been on the improve over the last six months with the IRIS Trading Conditions Index growing 16% in the last quarter while the construction and transport sector has had positive yet more
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