After the initial hit to commercial and industrial property during the early phase of the COVID-19 pandemic, Western Australia’s economy has finally started to recover and looks set for a strong 2022. With a low unemployment rate and increasing household disposable income, Perth is tipped for a busy year in the commercial property industry.
The year of 2022 could be the ideal time to both buy and sell commercial property, especially considering last year’s sales:
- Almost $40 million in $20 million plus sales were recorded in sales for 2021, according to m3property research.
- $15 billion was recorded across office transactions, 60% higher than last year.
- Retail witnessed 214% growth taking the sales value to $11.5 billion.
- $13 billion for industrial sales, representing a 49% increase.
It is expected the sector will see even further growth than it did in 2021, which exceeded pre-pandemic levels.
With WA’s economy and unemployment rate (3.4% compared to the national average of 4.2%), it’s a great time for the commercial property market.
With investors and buyers expected to want to expand their portfolios to WA when the borders reopen, this year is the time to think about acting now in securing a commercial property.
Hot Commercial Real Estate Suburbs in 2022
Looking to buy your next investment property or commercial space, you want to be aware of the supply and demand of property in the suburb or area of interest.
With Ross Scarfone specialising in outer-suburban commercial and industrial properties in Perth’s South East, the suburbs continuing to see good demand are Welshpool and Kewdale.
For smaller properties in the surrounding areas, Carlisle, East Victoria Park, and Cannington are, too, continuing to see demand.
In 2022, we are expecting Burswood and Belmont to join the others in becoming in demand suburbs too.
Most of these suburbs are accessible to Perth airport, freight rail line, and major freeways.
In the last year, demand for offices has declined due to the face of work changing due to COVID-19 in Australia making vacancy rates high.
However, this year there is expected to be an office market rebound, and those looking to purchase a commercial office space have the opportunity to increase the value during this time of the Pandemic.
With Perth office vacancy rates decreasing to 16.8% at the end of 2021, experts see this as a vote of confidence.
Properties able to give larger office spaces to workers will be preferred as they can accommodate flexible work practices and respect social distancing measures.
Those looking to invest in a commercial office space must think of renovations and space in order to keep up with health and safety measures. There’ll be an increase in demand for spaces who make these changes.
As for industrial spaces, research found the sector thrived due to a boom in online retailing, and this is only expected to grow.
Great Time to Invest in an Industrial Property
This year is backed to see investors returning and expanding their Perth properties, especially with borders expecting to reopen sometime in 2022.
With WA having a strong economy, low unemployment rate, and high investor interest, it’s a great time to invest in commercial properties and act soon.
For a detailed breakdown of the Perth commercial real estate market or specific advice on warehouses for sale in Perth, call or email Ross Scarfone Real Estate.