Demand for commercial investment is soaring, with auctions achieving a clearance rate of over 90% for the first half of 2015.
Figures from Ray White Commercial reveal that investment auctions achieved an impressive clearance rate of 91.4% in the six months to June 2015.
According to Ray White Commercial senior director auctions and investments, Richard Impiombato, the results for investment auctions was the highlight of an overall auction clearance rate of 73.87% for first half of 2015, a significant rise from 55.18% in the previous quarter.
“Investment sale auction transactions were worth a total of $62,032,000 for the year to June with 32 out of 35 listings sold,” he said.
“Passive investment property with the ‘trifecta’ of a long lease, secure covenant and attractive location continue to be in strong demand.”
Impiombato said the figures also reveal that the clearance rate for vacant buildings soared from 53.6% in the March quarter to 82.6% in the second quarter.
“This result proves the effectiveness of the auction process for what are traditionally more difficult and time consuming assets to divest from,” he said.
“It’s also worth noting properties in this sector averaged only 40.31 days on the market.”
Further proving the strength of the commerical property investment market, Australian Broker reported yesterday
that non-major bank, Chifley Securities provided $65 million in commercial property finance to Chinese investors since June 30, compared with $35 million provided in the first six months of 2015 – an 86% increase.