Latest Cityscope News - August 2022

NSW

Sydney Cityscope

The latest research from Sydney Cityscope shows that Sydney CBD commercial property sales value for the three months ending August 2022 has increased from the preceding quarter. There were 100 sales recorded for the most recent quarter with a total value of over $1.8 billion, as compared to the 47 sales for a total of $1.149 billion for the quarter ending May 2022 and the 54 sales for a total of $3.354 billion for the quarter ending February 2022. For the year ending August 2022, there were 284 sales recorded for a total of $7.947 billion, compared to the 186 sales for a total of $4.651 billion for the year ending August 2021.

Notable Sale: One Circular Quay development site at 1 Alfred Street, Sydney, currently a development site with construction underway for a 59-storey apartment tower (Tower A) with 190 private residences and retail premises and a 30-storey Waldorf Astoria Hotel (Tower B) comprising 220 rooms, a large rooftop bar on level 25 and a double-height presidential suite, which was bought for $850 million.

Macquarie Park Cityscope

The latest research from Macquarie Park Cityscope shows that commercial property sales have increased in value in the past three months. Sales recorded in the quarter to August 2022 totalled $86.7 million from 8 sales, an increase in value compared to the $61.5 million from 15 sales in the quarter to May 2022 but a significant decrease from the approximately $1.148 billion from 20 sales in the quarter to February 2022 . This data brings the twelve-month total close to $1.326 billion from 56 sales, a decrease in total value from the previous twelve-month total of $1.648 billion from 57 sales.

Notable Sale: 15 Orion Road, Lane Cove West (NR27.6), an eight-storey office building with two warehouse areas of 3,036 sqm, an attached three-storey annexe to the north and a single-level cafe attached to the front of the building, built in 1988 with a total of 230 car spaces in a three-level car park to the rear and on paved, on-grade parking around the building. The property, providing office space 6,529 sqm and total net lettable area 9,565 sqm, was bought for $31.5 million in a deal handled by CI Australia.

VIC

Southbank Cityscope

The latest research from Southbank Cityscope shows both the property sales volume and sales values have increased in the past three months. Sales recorded in the quarter to August 2022 totalled $495.4 million, an increase from the $226.2 million recorded in the three months to May 2022 and the $155.3 million recorded in the three months to February 2022.  This data brings the 12 month total of over $1.238 billion, an increase from the $1.145 billion recorded the same time last year.

Notable Sale: Mercure Melbourne Southbank, formerly known as Travelodge Hotel Melbourne Southbank, (SB1.13B) at 9 Riverside Quay, Southbank, 11-storey, 275-room, completed mid 2002 at a cost of $38 million, which was bought for $94.599 million as part of the $620 million portfolio sale of 11 Travelodge Hotels through McVay Real Estate and Credit Suisse.

Burke Road Cityscope

The latest research from Burke Road Cityscope shows sales value has significantly decreased in the quarter to August 2022, due to the $125 million sale of Stratum lot 3 in CV Two in the last quarter. In this latest quarter, there were 7 sales at $9.3 million, compared to the 6 sales at a total value of $142.9 million in the previous quarter. This quarter brings the 12-month total to $211.4 million comprising 28 sales, a large increase compared to the 18 sales at a total value of $45.5 million over the previous year.

Notable Sale: Lot G01 in the Confluence at 469-472 Riversdale Road, Hawthorn East, a 260 sqm retail shop, including a tandem car parking and a storage area on basement level 1, which was bought for $2.8 million.

Chapel Street Cityscope

The latest research from Chapel Street Cityscope shows that commercial property has decreased in terms of sales value for the past three months. Sales recorded in the quarter to August 2022 totalled $8.4 million from 5 sales, compared to the $51.8 million from 6 sales in the quarter to May 2022 and from the $43.6 million from 9 sales in the three months to February 2022. This data brings the 12-month total to $142.6 million from 27 sales, an increase from the previous twelve month total of $117.1 million from 32 sales.

Notable Sale: Unit 1 at 242 Chapel Street, Prahran, a retail unit on the ground floor, was bought for $3.25 million.

Richmond Cityscope

The latest research from Richmond Cityscope shows that both the property sales number and value have increased in the past three months. Sales recorded in the quarter to August 2022 totaled $209.5 million with 20 sales, an increase from the $82.8 million with 15 sales recorded in the three months to May 2022 and from the $174.5 million with 20 sales recorded in the three months to February 2022. This data brings the 12-month total to $632 million from 71 sales, a significant increase from the $146.6 million from 28 sales recorded for the same time last year.

Notable Sale: 510 Church Street, Cremorne, an A-grade 10-storey tiered office tower with a three level podium, comprising 19,805 sqm of lettable area across 9 levels of office accommodation, ground floor retails and rooftop garden plus two basement parking levels for 145 cars, completed in October 2021 at an estimated cost of $250 million. A 50% interest of this property owned by Irongate Property Sub Trust No. 30 was acquired for $135 million by 360 Capital REIT (TOT) as part of agreed trust scheme of arrangement.

Melbourne Units Cityscope

Sales recorded for Melbourne Units Cityscope for the three months to August 2022 totalled $336.9 million from 534 sales, which includes some of the off-plan sales in Paragon Queen Street Melbourne, an increase compared to the $203.7 million from 320 sales in the quarter to May 2022 however a decrease compared to the $530.6 million from 720 sales recorded in the quarter to February 2022. The latest data brings the twelve-month sales total close to $1.547 billion, a decrease from the previous twelve months, which recorded sales of close to $1.835 billion.

Notable Sale: Unit 11/1, known as 111/99 Spring Street, a two-bedroom plus study apartment on level 11 in the 20-storey residential building built in 1972 and facade refurbished in late 2014, which was bought off-market for close to $3.5 million through Kay & Burton South Yarra.

QLD

Brisbane Cityscope

The latest research from Brisbane Cityscope shows in the last three months sales figures have decreased. The last three months to the beginning of August 2022 recorded 10 sales for a total of $260.8 million, with $174.3 million for commercial, $2.2 million for commercial strata, $200,000 for retail strata and $84 million for other. In comparison, the last three months to the beginning of May 2022 recorded 6 sales for a total of $427.9 million, with $420 million for commercial, $5.4 million for commercial strata and $2.5 for retail strata. The 12 months leading up to the beginning of August 2022 recorded 50 sales for a total of over $1.64 billion, more than $405.7 million higher than the recorded figure for the same time period the year before.

Notable Sale: A 20-storey office building at 200 Mary Street has been purchased for $108.5 million by WDP Fund 003 Pty Ltd, a subsidiary of Wingate Group Holdings. Wingate Group Holdings is an investment firm which specialises in property investment, asset management, global equities, consumer and asset financing and private equity. The 20-storey building has round 13,352 sqm of office space and car parking for 192 vehicles.

Brisbane Fringe Cityscope

The latest research from Brisbane Fringe Cityscope shows in the last three months property sale figures have significantly decreased. The last three months to the beginning of August 2022 recorded 28 sales for a total of $94.1 million, with $16.4 million for commercial, $14.4 million for commercial strata, $55.6 million for retail, $3.5 million for retail strata and $4.3 million for other. In comparison, the last three months to the beginning of May 2022 recorded 42 sales for a total of $520.1 million, with $442.5 million for commercial, $24 million for commercial strata, $8.1 million for retail, $5.8 million for retail strata and $39.6 million for other. The 12 months leading up to early August 2022 recorded 147 sales for a total of $1.042 billion, $679.7 million more than the same time last year.

Notable Sale: The Fujitsu Building and 1 Breakfast Creek Road a 6,231 sqm, five-storey office building and an 884 sqm, single-storey retail/commercial building on the ege of Fortitude Valley, were bought together for just over $55.56 million by Newstead Central Holdings Pty Ltd. Jonathan O’Brien, Mike Walsh, Peter Court and Frederic Le Fanue of Cushman & Wakefield Brisbane negotiated the sale in conjunction with Bruce Baker, Jack Morrison and Adelaide O’Brien of CBRE Brisbane. The sale represented an initial yield of 6.3% on a passing income of $3,500,817. The two properties last traded for just over $36.2 million in 2015.

Brisbane South Cityscope

The latest research from Brisbane South Cityscope shows sales have increased in terms of both sales value and sales volume. In the quarter ending August 2022, there were 10 sales for a total of $25.9 million, compared to the 2 sales for a total of over $5.2 million in the previous quarter but a decrease from the  16 sales for a total of $185.5 million for the quarter ending February 2022. The 12 months leading up to the end of August 2022 recorded 40 sales for a total of over $304.8 million, an increase from the 38 sales for a total of $139.4 million recorded for the same time last year.

Notable Sale: 28 Beesley Street, West End, a single-storey office building, with a paved parking area for 20 vehicles to the rear and two car parking spaces to the Beesley Street frontage, which was bought for $5.65 million through C Property Qld.

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