Brisbane western fringe strata market remains strong
Brisbane’s western fringe strata office and retail market has remained strong despite the period of economic uncertainty which has had a negative impact on the CBD market, according to Ray White Commercial research.
Vanessa Rader, Head of Research for Ray White Commercial, said the strata office market has experienced improvement in investment turnover since 2014 with significant investment in the retail side.
“Activity in the strata office market in the western fringe has shown a pickup in activity due to increased interest by opportunistic investors capitalising on historical low interest rates,” she said in the Between the lines Milton & Toowong strata market report August 2015.
“Quality or premium type assets have been sought after by investors, achieving capital values in the region of $17,000 per sqm.
“These properties are typically those well located on Park Road, Milton, and have secure long term restaurant leases.
“These highs exceed those capital values achievable within the CBD, highlighting the confidence in this location.
“Prime retail assets are more reasonably priced in the $8,000 per sqm to $12,000 per sqm range and are also strongly food or convenience driven tenancies in locations such as Sherwood Rd, Toowong.”
Ms Rader said rents achievable vary depending on the quality of the assets.
“Premium assets in terms of location, size and access demand rents up in the $800 per sqm to $1,050 per sqm gross face range,” she said.
Ms Rader said while some areas in the western fringe have a high vacancy rate, it’s a different story for a number of quality assets in Milton.
“The sought after Camford Square development in Milton as well as the historic terraces at 249 Coronation Drive, Milton, and 15 Lang Parade, Auchenflower, are indicative of successful strata properties which consistently have close to full occupation,” she said.
