15 Feb, 2013
This month we sat down for a chat with Chad Henville, Director of commercial real estate agent Burgess Rawson. Here is what he had to say about the current state of the commercial sector in Perth and his predictions for 2013
Q – Tell us a little about the current state of the commercial sector in WA at the moment
A – Coming in to 2013 I think we will start to see an upturn in market sentiment, in particular within the owner-occupier market which is the main market in the industrial sector, approx. 80% of buyers are would-be owner-occupiers.
With interest rates remaining low, it’s more affordable to buy and there is certainly an opportunity here for owner-occupiers this year.
Since 2008’s global financial crisis (GFC) new supply has slowed right down. People were hesitant to buy and this has been pushing the increase of demands in rentals and rents. In 2013, we are likely to see an increase in demand for owner-occupiers to purchase across all property sizes.
Q – What’s the outlook for 2013 and are there particular investment opportunities in Perth?
A – 2013 is looking to be the tipping point for investment. Bank interest rates are heading down towards the inflation rate. Interests rates are low which reflects a conservative sentiment making it a good time to buy through smart investing.
There are good investment opportunities out there for the astute investor.
In Malaga, particularly in smaller units there are good opportunities on existing stock. Malaga’s infrastructure continues to improve with the proposed flyover on Malaga Drive. This new flyover will increase accessibility to the area and make it more attractive to owner-occupiers.
Balcatta continues to be tightly held with Bayswater and Bassendean also areas to keep an eye on as they slowly rejuvenate
People should keep an eye on Government spending. Money spent on infrastructure, road infrastructure in particular will enhance the value of Perth’s industrial suburbs.
Q – How can investors maximise the future potential on their investment?
A – By looking ahead. It’s important to find a builder who understands and follows new trends in the market and can predict the areas of your development that could increase your initial investment.
Tenants are expecting more out of a building in the current day, better presentation, staff amenities, car-parking etc. and at Rapid Tilt Construction, Adam Jupp and his team of builders keep a close eye on industry trends and are mindful of future trends. Using this knowledge and their connection to the industry, Adam is able to advise his clients on what future occupiers will need from a building, in turn ensuring his clients are maximising the future investment potential on their development.
