The total value of commercial sales in Australia continues to reach massive highs with $8.55 billion in office, industrial and retail transactions over the March 2022 quarter, up from $8.09 million over the same period in 2021.

m3property’s National Research Specialist, Casey Robinson said industrial and office sales continue to soar while retail sales fell.

“The total value of industrial sales rose by a whopping 74% with $3.294 billion in sales while office sales grew by 32% from $3.47 billion to $4.55 billion.

Source: RCA, m3property

“Retail property recorded about $1.7 billion in sales over the March quarter, dropping 25% from the March quarter 2021,” she said.

Notable sales include Casuarina Square shopping centre in Darwin which fetched $397 million and was acquired by Sentinel Property Group from GPT Wholesale Shopping Centres Fund.

Blue Tower office building in Brisbane sold for a net sale price of $391 million, excluding transaction costs. Vendor, Dexus announced that the divestment enabled them to redirect capital into their development pipeline, including the Waterfront Brisbane development.

Several property portfolios were also purchased including Blackstone’s acquisition of GIC’s 49% joint venture interest in the Dexus Australian Logistics Trust (announced late 2021) for circa $2.1 billion.

Elsewhere, GIC and Centuria acquired the retail component of the $1.1 billion West Village mixed use development in Brisbane for circa $202 million in an off-market transaction which included existing properties as well as assets to be constructed.

Tasmania also recorded its largest ever property transaction – Parliament Square in Hobart – which sold to Spirit Super for $338 million. The property is a mixed-use asset comprising office, hotel, retail, and car parking components.

“Offshore buyers were the most active purchasers of office stock in the March quarter, making up 47% of the total, with Institutions following at 25% and REIT’s next with a 20% stake in the total.

“Institutions favoured retail assets making up for 44% of the total value of transactions while private investors took a shine to retail property with a 37% claim of the total,” she said.

Ms Robinson added that demand for commercial property is likely to continue over the remainder of 2022 despite the backdrop of inflationary pressures and expected interest rate rises.