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Capital markets start to come back to life
Released 30 September 2010

Commercial property transactions in Australia showed an encouraging rise in the third quarter 2010, according to CB Richard Ellis.  

Properties sold on the direct market tallied $2.6 billion for transactions greater than $5.0 million each. The third quarter 2010 volume was 268% above the second quarter 2010 and 75% above the same quarter last year.

CBRE Executive Director, Global Research and Consulting, Kevin Stanley said sales activity has been uneven for the past nine quarters with an average sales tally of $1.8 billion per quarter.

The September quarter 2010 volume was 70% above this average. However, the year-to-date volume, $4.6 billion, is still about 5.0% below the same year-to-date period in 2009.

Stanley said the source and type of investors as well as the location and type of properties sold had revealed some unusual trends in the third quarter.

The office sector attracted the lion’s share of investor funds, representing 70% of transactions in the quarter.

“Typically, this sector would account for around 50% of all transactions in any given period,” Stanley said.

“However, in the current market this type of stock is ready to sell, with a large number of new office buildings featuring long leases and attractive depreciation benefits available for incoming investors."