There’s been a bit of movement in the market since my last update and I wanted to take the opportunity to share my views on what this means in terms of opportunities for those interested in commercial real estate.
Looking at how recent changes to the cash rate have impacted the commercial real estate market we can see that things have inevitably slowed down – and there’s a big difference there. The market has slowed, which is to say that properties continue to be sold and leased it’s just taking a little longer these days. For example, properties that I would have expected to sell within a week or two of listing are now taking twice that long. Put simply, the demand is still there but the decision process is a lot more measured now.
We are not seeing a major shift in prices across the broader market however there are one or two properties popping up where the seller or landlord has a bit more motivation than the average owner to conclude a sale or lease – and as a savvy investor or tenant that should tell you NOW is the time to strike.
It’s inevitable that the market will pick up pace again once the interest rate starts dropping as many predict – and the faster it drops the more urgency will enter the market, so don’t miss your chance to secure that property at a good price and at a time when you can afford to be a little more measured in your approach.
If you are a property owner keep in mind that there is a consistent level of demand within the marketplace and that transactions are being successfully negotiated and completed every day – it’s really only the process that is a bit longer than it used to be.
Considering the market as a whole, we need to remember that the Sunshine Coast is still one of the most desirable places in Australia to live and our projected population growth out to 2032 should see a further 250,000 people take up residence – and all of them will be in the market for real estate in one form or another, both residential and commercial.