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Sydney CBD Strata Market Booms With Record Sales
As Sydney residential prices soften across the board, the Sydney CBD office strata market continues to go from strength to strength.
Sydney’s strata office market has developed a reputation for being a relatively affordable, low-risk way for conservative investors to dip their toes into the world of commercial property. However, recent land tax increases, a lack of new supply of stock and a surge in SMSF-funded investments have driven up demand and values across the city.
For example, William Shen, Director of Sales and Leasing at TGC, sold Level 11, 97-99 Bathurst Street, Sydney for $5.1 million in January 2015 – a 692sqm space that boasts four car spots, quality fit-out and great natural light.
Recently, in August 2018, Shen resold the level with only three parking spaces for a handsome $8.5 million – a record sale price for the building. This means that, in less than four years, the previous owner was able to put away a profit of $3.4 million with one CBD car space still in hand – not bad for what some may call a ‘cautious’ investment.
Small investors could still benefit from taking a piece of the Sydney strata market pie. However, Shen maintains that buyers must remain aware of the risks involved, including lower rates of capital growth and more extended vacancy periods.
“Above all, it’s important to choose the right location, pick the right property and buy and sell at the right time. And, to get this balance right, even seasoned investors should seek professional advice” says Shen.
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TGC is a commercial real estate agency that services the Sydney CBD and greater metropolitan property market.
Over the past 25 (plus) years, the agents at TGC have assisted many individuals and businesses in acquiring strata investments. If you want some assistance with your next commercial real estate investment decision or want to know what your commercial property is worth, get in touch today!