Login
iscover
Buyers are lining up for commercial space around Northbridge, thanks to the construction start of a nearby educational institution this year.
According to Cygnet West, strong demand for well-located inner-city properties was observed in December, when private auctions for two hospitality venues in Northbridge both attracted “fierce bidding”.
The Perth-based independent commercial agency — in partnership with AXIA Corporate Property — oversaw the campaign to sell 28 Roe Street, which was tenanted by a popular small bar, The Standard, and 63 James Street, currently tenanted by Japanese restaurant, Kobe Teppanyaki.
The properties were separately sold by a local private investor’s family office, with both receiving multiple bids, according to Cygnet West Retail Agency director Tim Scott.
As for the winning bids, 28 Roe Street was sold for $3,424,000, while 63 James Street attracted a purchase price of $2,080,000.
“Both properties are located in the heart of Northbridge and near the upcoming [Edith Cowan University] ECU campus, so [they] had strong interest from the market,” Mr Scott said.
With construction scheduled to commence in the first quarter of 2023 and due for completion in late 2025, the ECU City campus will be a 60,000-square-metre educational institution spanning 11 super-levels over more than 8,000 square metres of Perth City Link land in Perth’s CBD.
The inner-city campus development is forecast to add millions of dollars to Perth’s economy and underpin jobs across multiple sectors, including education, construction, property, technology, the arts, hospitality, retail and tourism.
In addition to creating more than 3,100 jobs during the construction phase, the campus is also seen to bring vitality to local businesses and the community surrounding it, thanks to the estimated 10,000 students living their campus life in the vicinity upon its completion.
“There was a range of buyers interested in the property, from investors to hospitality operators to developers,” Mr Scott commented.
Additionally, Cygnet West oversaw the sale of 194 William Street, known as Perth Hostel, which was fetched for $4.5 million.
Cygnet West retail agency director Ahmad Ibrahimi revealed there was a large influx of enquiries from short-term accommodation operators.
Mr Ibrahimi said he expected investor interest in Perth retail to continue to be robust this year, with transactional activity likely to rise as vendors look to leverage the region’s strongly performing economy and sector, based on the 2.4 per cent retail turnover growth seen in the September 2022 quarter.
Mr Scott also said he expected investors to continue to display a “near-insatiable appetite” for retail properties this year, with high-net-worth individuals expected to be particularly active at the lower end of the market.
“The current state of the WA economy is fuelling growth, however, rising interest rates may temper some of that growth.
“As we start to see interest rates level out or potentially come back slightly, that will likely drive another spurt of activity in the next 12 months,” he concluded.
Never miss a beat with 
Stay across what’s happening in the Australian commercial property market by signing up to receive industry-specific news and policy alerts, agency updates, and insights from reb.
Subscribe to reb Commercial:
You are not authorised to post comments.
Comments will undergo moderation before they get published.