The uncertainties surrounding the COVID-19 pandemic and its effect on the economy have failed to stop activity within Western Australia's investment market off the back of positive GSP results, new research has shown.

Ray White Commercial (WA)'s latest Between the Lines report shows $5.303 billion in commercial sales turnover was recorded in WA over the 2019/20 financial year, an increase of 48.79 per cent on the previous 12 months.

The report notes that the "big-ticket asset" transactions, such as the sale of BGC Centre (28 The Esplanade, Perth) for close to $103 million to Singaporean group Redhill Partners, that pulled the number up towards the end of last year had since made way for encouraging results from the smaller end of the market in the first half of 2020, with sub-$5 million transactions driven by local private buyers featuring prominently in the industrial space.

Source: Ray White Commercial (WA)

At a glance:

• Ray White Commercial's latest Between the Lines report has shown $5.303 billion in commercial sales turnover was recorded in WA over the 2019/20 financial year, an increase of 48.79 per cent on the previous 12 months.
• According to the report, commercial activity in the state across the past year consisted of a number of "big ticket" transactions towards the end of 2019 and encouraging results from the smaller end of the market at the beginning of this year.
• Ray White Commercial (WA) Director Stephen Harrison said WA was well-placed to rebound with strong exports and continued investment into infrastructure aiding employment.

Source: Ray White Commercial (WA)

Ray White Commercial (WA) Director Stephen Harrison said while the local economy had experienced setbacks across the past 12 months, WA was well placed to rebound with strong exports and continued investment into infrastructure aiding employment.

"This substantial growth in turnover was driven by a number of high-value sales which occurred in late 2019 and into 2020, highlighting the improved confidence in the WA economy and optimism for the Perth office markets which have been recently plagued by high vacancies," he said.

"We have seen institutional buyers believe in the Perth market; local syndicates and private buyers also continue to show faith in this market and the affordability, given the higher yields which WA offers compared to East Coast office markets.

Source: Ray White Commercial (WA)

"Given the local time zone, Perth is often attractive to offshore Asian buyers, with this year no different with the sale of BGC Centre (28 The Esplanade, Perth) for close to $103 million to Singaporean group Redhill Partners in late 2019."

Mr Harrison said the reliance of Perth office markets on the mining/engineering sector more so than professional services, which had been under pressure due to the COVID-19 pandemic, meant there was cause for optimism going forward.

Source: Ray White Commercial (WA)

"The continued infrastructure investment into the state and continued increase in exports will ensure WA as an economy is well placed to weather the COVID-19 storm and outperform other economies," he said. 

Click here to view the report.

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