Commercial property sales are running hot so far in 2015, with auctions for investments recording a clearance rate over 90 per cent for the first half of the year.
The results for commercial investment were the undoubted highlight of the overall strong auction clearance rate figures, which sat at 73 per cent for the same period.
That was a big jump from the previous quarter, which recorded a 55 per cent overall commercial property auction clearance rate.
Ray White Commercial senior director of auctions and investments, Richard Impiombato, told Brokernews that investment sale auctions were worth a total of $62,032,000 for the year to June.
“Passive investment property with the ‘trifecta’ of a long lease, secure covenant and attractive location continue to be in strong demand,” he said.
Mr Impiombato also noted that the clearance rate for vacant buildings jumped markedly from 53 per cent to 82 per cent in the second half of the June quarter.
“This result proves the effectiveness of the auction process for what are traditionally more difficult and time consuming assets to divest from,” he said.
“It’s also worth noting properties in this sector averaged only 40.31 days on the market,” he told Brokernews.
In another boost and sign of the current strength of the commercial property market, it was revealed in Australian Broker this week that Chifley Securities provided a big jump in commercial lending to Chinese investors over recent months.
Chifley Securities have provided $65 million in commercial property finance to Chinese investors since June 30 this year. That’s a spike from the $35 million they provided in the whole of the six months since the start of the year.