Cityscope News - June 2024

Cityscope has been researching commercial property in the capital city CBD markets of Australia for nearly 50 years. In the past month, new sales transaction data has been released for the markets below.

NSW

South Sydney Cityscope

The latest research from South Sydney Cityscope shows that commercial property sales value has increased in the past three months. Sales recorded in the quarter to June 2024 totalled $335.3 million from 61 sales, an increase compared to the $157.9 million from 23 sales in the three months to March 2024 and to the $333.2 million from 20 sales in the three months to December 2023. This data brings the twelve-month total close to $1.09 billion from 132 sales, an increase from the previous twelve-month total of $853.1 million from 162 sales.

Notable Sale: Biomedical Building at 1 Central Avenue, Eveleigh, a six-storey brick building, completed and officially opened in December 1999, with a building area of 7,705 sqm plus parking for 32 cars, on a block of 2,727 sqm, which was bought for $103 million through Rebus Property.

Parramatta Cityscope

The latest research from Parramatta Cityscope shows sales have decreased in terms of sales value and sales volume. In the quarter to June 2024, there were 7 sales at a total value of $6.5 million, compared to the 9 sales at a total value of $19.3 million in the previous quarter and the 12 sales at a total value of $140.6 million in the quarter to December 2023. The 12-monthly sales value has decreased, with 41 sales at a total value of $210.5 million for the year to June 2024, compared to the 75 sales at a total value of $335.8 million for the previous year.

Notable Sale: 102 Wigram Street, Harris Park, a single-storey weatherboard house on a 278 sqm block, which was bought for $2.1 million.

Chatswood Cityscope

The latest research from Chatswood Cityscope shows commercial property sales in the areas have increased in terms of total sales value. Sales recorded in the quarter to June 2024 totalled $253.9 million from 21 sales, an increase compared to the $35.7 million from 22 sales recorded in the previous quarter but a decrease from the $327.8 million from 10 sales in the quarter to December 2023. This latest data brings the total sales value in Chatswood Cityscope to $654 million from 68 sales for the year, an increase from the $589.4 million from 82 sales recorded the same time last year.

Notable Sale: NEXTDC Sydney (S6) at 3 Broadcast Way, Artarmon, a 6-storey a high-technology data centre building with facility of up to 13.5MW across 4,000 sqm of data hall space, completed in second quarter 2022 on a 3,840 sqm block of land, which was bought for $184 million.

Newcastle Cityscope

The latest research from Newcastle Cityscope shows commercial property sales in Newcastle's CBD have increased. Sales recorded in the quarter to June 2024 totalled $56.8 million from 23 sales, an increase compared to the $24.6 million from 17 sales recorded in the previous quarter and the $30.9 million from 15 sales recorded in the quarter to December 2023. This latest data brings the total sales value in Newcastle Cityscope to $132.4 million for the year, a decrease from the $175.8 million recorded the same time last year.

Notable Sale: 73 Railway Lane, Wickham, a fenced yard of 1,972 sqm land area, and 79 Railway Lane, Wickham, a large single-storey corrugated-iron warehouse with a building area of 1,741 on a 2,584 sqm parcel of land, which were bought together for $12.5 million through Presence Real Estate.

ACT

Canberra Cityscope

The latest research from Canberra Cityscope shows property sales value has decreased in the past three months. Sales recorded in the quarter to June 2024 totalled $39.6 million from 20 sales, a decrease compared to the $79.8 million from 16 sales in the quarter to March 2024, and $96 million from 14 sales recorded in the quarter to December 2023. The data brings the 12-month total to $363.9 million, a significant decrease from the $907.4 million recorded the same time last year.

Notable Sale: Optus Centre at 10 Moore Street City, a six-storey office and showroom building with basement parking for 44 cars; built in 1985. The Moore Street entrance was refurbished in 2008 and building was refurbished in 2019, with a net lettable office area of 6,709 sqm, which was bought for $26.5 million.

VIC

Melbourne Cityscope

The latest research from Melbourne Cityscope shows that commercial property sales value has increased in the past three months. Sales recorded in the quarter ending June 2024 totalled $359.8 million from 41 sales, an increase compared to the $196.7 million from 40 sales recorded in the previous quarter and the $105.8 million from 32 sales recorded in the quarter ending December 2023.This data brings the 12-month total close to $1.074 billion from 153 sales, a significant decrease from the previous 12-month total over $3.004 billion from 168 sales.

Notable Sale: QBE House at 628 Bourke Street, an office complex consisting of an eight-storey podium to Bourke Street and a 16-storey tower to Little Bourke Street, completed in 1989. A $35 million major refurbishment was carried out in 2021. The building has a net lettable area of 24,127 sqm with floor plates of 1,275 sqm or 2,500 sqm and parking for 125 cars on a site of 3,318 sqm, which was bought for over $115 million on an initial yield of 8.77%.

QLD

Gold Coast Cityscope

The latest research from Gold Coast Cityscope shows property sale figures have decreased over the past three months. Sales recorded in the three months to ¬June 2024 recorded 36 sales for a total of $46.9 million. Of this, $10.4 million was for commercial, $20.5 was for commercial strata, $4.5 million was for retail, $8.1 million was for retail strata. In comparison, the three months to March 2024 recorded 27 sales for a total of $73.7 million. Of this, $10.9 million was for commercial strata, $59.2 million was for retail and $2.9 million was for retail. The latest data raises the 12-month total to $562 million, $247.5 million higher than the previous 12-month period.

Notable Sale: Unit 1 at 21 Lake Street, Varsity Lakes, a 1,650 sqm tavern and bistro that includes storage on the ground-floor of the three-storey commercial and retail building. Bought for $6 million by CBD Hotel Varsity BJM Pty Ltd. Ray White brokered the deal.

WA

Perth Cityscope

The latest research from Perth Cityscope shows property sales' value has increased. Sales recorded in the quarter to June 2024 totalled $109.6 million from 27 sales, an increase in value compared to the $43.2 million from 36 sales recorded in the quarter to March 2024 but a decrease from the $189.1 million from 28 sales recorded in the quarter to December 2023. The data brings the twelve-month total to $424.7 million from 112 sales, a large decrease from the $917.9 million from 85 sales recorded for the previous twelve months.

Notable Sale: 181 St Georges Terrace, Perth, a 7-storey office building which comprises 3,590 sqm of office space with typical floor plates of 535 sqm plus basement parking for 14 vehicles on a block of 696 sqm, sold for $26.5 million.

CoreLogic Australia