Price the key to a Perth commercial property sale says Raine & Horne Commercial
Media release - 14th November, 2012
Commercial properties $2M and under attracting strong interest
- Setting the right price is critical to a fast commercial property sale in Perth
- The commercial market under $2M represents excellent value for buyers
In the current market, leading commercial real estate firm, Raine & Horne Commercial WA, is advising West Australian commercial property owners that setting the right price is critical to securing a winning sale.
“It’s true the Western Australian economy has remained reasonably strong in the face of international uncertainty, while many forecasters are tipping strong growth over the next 3-5 years, yet commercial real estate investors and owner-occupiers have not forgotten the events of the recent past,” says Anthony Vulinovich, Director of Raine & Horne Commercial WA.
As a result, Mr Vulinovich reports that sales activity in Perth is generally subdued with private syndicators and high net worth individuals the most active players in the commercial and industrial property markets.
“However, with the cost of borrowing, strict lending criteria and plenty of choice, even these buyers are being very diligent before handing over their money,” says Mr Vulinovich.
But it’s not all doom and gloom, with properties priced $2,000,000 or less representing excellent value for money, according to Mr Vulinovich, and as a consequence attracting strong interest from a variety of buyers.
For example, Raine & Horne Commercial WA has recently successfully auctioned a number of sub-$2M properties, including 32 Shields Crescent, Booragoon, which sold for $1,167,500.
After a brief but intensive marketing campaign a large number of enquiries were received and bidding was very active on the day.
“The property was sold with a lease to a strong national tenant, Tradelink, and the sale price reflected a 5.5% return on investment,” says Mr Vulinovich, a strong advocate of the auction process.
“The cornerstone of an auction is its concentrated marketing campaign that is able to focus the attention of the market upon the property for sale,” advises Mr Vulinovich.
“This ensures the property achieves both maximum exposure and maximum price potential for owners.
“On the flipside, buyers are able to freely determine the true value of a property, and the auction process itself creates a sense of urgency and adds to the atmosphere of heightened expectations.”
Should you wish to discuss how to best optimise the sale of a Perth commercial property, please contact Raine & Horne Commercial WA on 08 9380 4500.
For further media information contact:
Anthony Vulinovich, Director, Raine & Horne Commercial WA on 0411 516 343
Andrew Harrington, National Marketing & Communications Co-ordinator on 02 9258 5400