Sales e-booklet September

SYDNEY

STRATA OFFICE SALES

MARKET OVERVIEW Q3 2018 The Sydney CBD Strata Sales market appears to have undergone a slight change in conditions Q1 18.

With the Banking Royal Commission’s spot

The State Government’s capital works

light on questionable lending practices result-

infrastructure

ing in far stricter credit assessments for new

ue, as the Light Rail Project works will

loan applications, borrowers are facing a chal-

now be completed by March 2020. It is

lenging time in securing finance.

our opinion that Strata Office buildings

programmes

contin-

On top of this, 3 of the 4 major Austra-

along George Street and even within a

lian Banks have started to increase interest

block away are certain to benefit upon

rates out of step of the official RBA cash rate

completion, as these building will have a

setting (which has remained at a record low of

greater sense of amenity enhancing the

1.5 % for 24 months as at 7 August 2018).

overall desirability of these strata build-

The above two scenarios have impact-

ings and suites.

ed sales prices slightly (circa 3%-7 %), more so for the vendor seeking to sell a tenanted investment. However it must be put into context as its not all doom and gloom.

For example, a 161 sqm suite in 84 Pitt Street sold in September 2016 for $1,199,999.00 or $7,453.41 psm to an owner occupier, would now be selling for about $2,133,250.00. That is a capital gain of 54% over a 24 month period. The fundamentals of property ownership creating and growing wealth.

Again a lack of supply is a major issue

“For example, a 161 sqm suite in 84 Pitt Street sold in September 2016 for $ 1,199,999.00 or $ 7,453.41 psm to an owner occupier, would now be selling for about $2,133,250.00, that is a capital gain of 54 %, over a 24 month period.”

within the market and there is no new strata office projects being marketed and no stage 1 DA submitted to the City of Sydney LGA, as well there is the new legislation for collective strata plan sales which could see an entire strata plan redeveloped into a single title office building or potential conversion to hotel accommodation.

The collective sale scenario may well see a withdrawal of several office strata plans from the market, helping to bolster price growth on the remaining strata plans.

Ray White Commercial Strata Office Sales continues to field a level of purchaser inquiry we find challenging to satisfy, so if you may be thinking of selling for various reasons or just wish to know what your suite may be worth in the current market, please do not hesitate to contact me on 0447 777 037 or cminards@raywhite.com

AUCTION RESULTS QUARTER 2/3 2018 PUBLIC AUCTION RESULTS AS REPORTED BY auctionWORKS

SOVEREIGN CENTRE, 1004, 99 BATHURST STREET, SYDNEY AREA TENURE PRICE PSM

7 AUGUST 2017 105 sqm Vacant Possession $1,712,000.00 $16,304.76

LEVEL 5, 82 ELIZABETH STREET, SYDNEY

7 AUGUST 2018 AREA TENURE Price PSM

217 sqm Vacant Possession $2,400,000.00 $11,059.90

LEVEL 3, 309-313 PITT STREET, SYDNEY

17 JULY 2018 AREA TENURE PRICE CAR SPACE PSM

385 sqm Vacant Possession $3,800,000.00 *$100,000 $9,610.38

*on assumption

Some of Christian’s current and past clients include: Tanerts Pty Ltd Mirvac Leda Holdings AMP Property Charter Hall

Colonial First State GE Real Estate ING Property Macquarie Office (unlisted Fund) Pacific Investment Pty Limited

In the past 12 months Christian has

A high level of understanding

overseen and driven the Strata office

and maturity coupled with a genuine

sales business line, having successful-

proactive approach allows Christian

ly transacted numerous off market

to achieve the results that his clients

sales with above market sales prices.

seek. Having a sound understand-

Since commencing his real es-

ing of the sales process and knowing

tate career in 1998, Christian brings

where the market cycle is gives Chris-

20 years of extensive office leasing

tian the ability to effectively commu-

experience to the Ray White Com-

nicate with prospective buyers and

mercial Office Leasing team.

in turn provide realistic expectations

Christian is a licensed real estate agent and a qualified auctioneer.

during negotiations.

CHRISTIAN MINARDS 0447 777 037 cminards@raywhite.com

FOR SALE $550,000.00 SUITE 803, 84 PITT STREET, SYDNEY ON MARKET

ABOUT THE PROPERTY

AREA

45 SQM

84 Pitt Street is one of the CBD’s most sought after strata office buildings, due to its highly prized location. It is situated within the heart of the financial precinct, making it popular with owner occupiers and investors alike. Convenient to Wynyard and Circular Quay.

STRATA

$1,149 inc GST pq

COUNCIL RATES

$245.5 inc GST pq

WATER RATES

$19.43 inc GST pq

• 45-square-metre suite • Offered vacant possession • Practical fitout in place

FOR SALE

$1,550,000.00

GROUND, 18 HICKSON ROAD, SYDNEY ON MARKET

ABOUT THE PROPERTY

AREA

96 SQM

Situated within Sydney’s most vibrant and dynamic precincts, Walsh Bay. This retail or office opportunity is located in amongst prestigious harbourside apartments, innovative marketing agencies and avantgarde cultural venues.

STRATA LEVY

$2,257.79 pq

COUNCIL RATES

$441.10 pq

WATER & TRADE WASTE

$516.16 pq

• Level access ground floor retail or office premises of 96m2 • Expansive street frontage with large windows • A blank canvass to create your inspired vision • Suite owner occupier or investors alike

FOR SALE

$3,750,000.00

LEVEL 5, 16 O’CONNELL STREET, SYDNEY ON MARKET

ABOUT THE PROPERTY

AREA

277 SQM

16 O’Connell Street is one of the CBD’s best examples of commercial Art Deco architecture, showcasing an era of sophisticated style, class and elegance.

STRATA ADMIN FUND

$5,814.05

STRATA CAPITAL FUND

$2,864.4

COUNCIL RATES

$1,028.10

WATER RATES

$71.90

Situated within the traditional financial precinct and surrounded by premium grade office towers such as 1 O’Connell Street, 1 Bligh Street and Chifley Tower. The level of amenity is first class as evident with the Sofitel Wentworth and Radisson Plaza Hotel within close proximity.

• Single floor tenanted investment • Currently subdivided into two separate tenancies, leased to single tenant • Lease expires 28/02/2021

FOR SALE

COMING SOON

LEVEL 7, 16 O’CONNELL STREET, SYDNEY OFF MARKET

ABOUT THE PROPERTY

AREA

277 SQM

16 O’Connell Street is one of the CBD’s best examples of commercial Art Deco architecture, showcasing sophisticated style, class and elegance.

PASSING RENT

$157,372

STRATA LEVY

$6,400.00 pq

COUNCIL RATE

$3,200 pq

Situated within the traditional financial precinct, surrounded by premium grade office towers and within close proximity to 5 star Hotels. Major transport hubs such as Wynyard, Martin Place and Circular Quay all within walking distance.

• Three sides of natural light • Quality legal fit out • Lease expires 31/05/2019 + Three year option

FOR SALE LOT 3, 5-7 BRIDGE STREET, SYDNEY OFF MARKET

ABOUT THE PROPERTY

AREA

435 SQM

The Burns Philp building is a landmark property that proudly sits in the heart of the financial precinct of the Sydney CBD. Built in 1901, the building sits directly opposite the ASX and possesses a rich history. The building offers great attention to detail that is simply not duplicated in today’s times.

SALE PRICE

POA

• Lease until September 2022, with a 5- year option • Solid rental income from established tenant

FOR SALE WHOLE FLOOR, 23 HUNTER STREET, SYDNEY

OFF MARKET

ABOUT THE PROPERTY

AREA

330 SQM

Currency House is located in the heart of the financial district of the Sydney CBD, on the corner of Pitt and Hunter Street and provides an opportunity for small to medium sized businesses to secure a quality commercial office suite in this prime location.

SALE PRICE

POA

• Whole floor • Vacant possession • Prime corner location • Investors could expect to lease up at circa $1000 psm pa gross + GST.

SALES AND AUCTION SERVICES Ray White Commercial (Office Leasing) Sydney was formed in 2001 and we’ve built a team of real estate professionals that take pride in every transaction. We pride ourselves on our considerable experience within the CBD market.

Our Strata Sales team focuses solely on the Sydney CBD office market. Should you wish to discuss any Strata Sales matters, please feel free to contact our experienced staff.

Our areas of specialisation include: 1

Marketing and sales of strata office space by private treaty and auction; 2

Sale and leaseback of owner occupied premises 3

Off-market transactions

4

Detailed market appraisales and competition analysis 5

Office leasing and property management services

CHRISTIAN MINARDS Director 0447 777 037 cminards@raywhite.com

SYDNEY STRATA OFFICE SALES

www.strataofficesales.com.au