Three Factors Driving Growth in Values for Commercial Property in Sydney

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View of the Sydney Opera House with the city behind at dusk

Commercial properties in Sydney will continue to grow due to these three factors that are anticipated in this year’s commercial property markets.

These three factors are finance, offshore capital, and new infrastructure projects. Many commercial agents also factor in the current political stability and recent events in Hong Kong that have a significant impact on the commercial market.

Offshore Capital

Due to the exchange rates and political stability, the commercial market sees growth in the offshore capital sector. There is a significant increase in interest from Hong Kong investors as well that result from the ongoing protests in their country. The Sydney LightRail has drawn strong interest from Hong Kong along with the accelerated urgency from the country to gain quality assets in Australia. In turn, for Sydney, this means that there will little to no shortage of capital in 2020 that is trying to find a place in the Australian market. Most of the capital that is anticipated in 2020 will be towards the office and retail sectors. A huge percentage of the capital seeks CBD office assets that has potential redevelopment in the future.

Infrastructure Projects

The revitalization project in Sydney’s central precinct is driving investments in 2020 and to add to that, Atlassian has plans to establish a high-tech precinct over the rail yards. These projects will create a demand for assets from investors who are looking to expand their capital. Furthermore, these are also attractive projects for developers.

Finance

Now that lending restrictions have loosened up and there are now low-interest rates, this will change the dynamics this year in the property market. Commercial Experts finance specialist Doug Harmen believes that we will also see the possibility of a decrease in interest rates this year, which will drive more owner-occupiers that will switch their rent for mortgages in the CBD commercial market in Sydney. Moreover, the boom in local technology and IT companies also have influenced property acquisitions for the industry. There are now more properties that are said to become available for sale as more vendors are looking to capitalize on these hot sale prices that will lead them to new opportunities. Business owners will have a chance to grow their operations while they pay off their mortgage on low-interest rates.

So, if you’re planning to invest in a commercial property in Sydney, this is your year. These three factors will continue to drive growth in the commercial industry. So, if you’re looking for the perfect timing to invest in commercial properties, 2020 is your year. Take advantage of the positive developments that are impacting the market and watch your business thrive. Despite the tragic events of the past year that hit several areas in Australia, it’s nice to know that some parts, specifically Sydney, show signs of growth that bring hope not only to Australians but to people all over the world. Sydney is brimming with awesome opportunities in the commercial industry this year. Don’t let this chance pass you by — make the right investment, so explore your options now!

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