- Office property topped the investors' to buy list
- Other properties came second
- Industrial only brought in $972 million in transactions for the quarter
In Cushman & Wakefield’s latest Marketbeat report, some $6.5 billion in investment volume has been made in Q1 2022, setting yet another record. This is circa $200 million above the previous Q1 record set in 2018 at $6.3 billion.
Offices lead the charge, with $2.7 billion transacted, followed by other at $1.39 billion, retail at $1.36 billion, and industrial at $972 million.
Return to offices
While some rally for a return to offices for employees, investors have done much the same.
The previous record in Cushman & Wakefield’s data, which still stands, was set in 2018 at $3.7 billion. That was promptly followed by a strong Q1 in 2019 with $3.4 billion transacted.
Most notable for the quarter is the Dexus Sydney Central project, developing the $1.4 billion headquarters for Atlassian. In transactions news, one of the larger deals struck in the quarter included 101 Miller Street in North Sydney, acquired by CapitaLand Integrated Trust for $422 million.
More than half a billion was transacted in Brisbane, including 12 Creek Street, which went to Marquette Properties for $391 million, and 179 Turbot Street, which went to Mercer Australia Property Fund for $151 million.
Devil’s in the data centre
While industrial transactions have dipped to $972 million for the quarter, Cushman & Wakefield noted that it remains to be the third strongest Q1 volume in the data series.
Notable transactions included McPhee’s Super Core Logistics four property portfolio which went to Dexus for $186 million. ESR purchased 286 Horsley Drive in Sydney for $152 million, and data centre company AirTrunk purchased 51 Huntingwood Drive in Blacktown of $110 million.
What’s other? And why $1.39B?
The category recorded its second highest figure on record, including transactions across mixed use, hotels, pubs, service stations, student accommodation, serviced apartments, self storage, aged, healthcare and childcare.
A mixed use development in Hobart was purchased by Spirit Super for $338 million, called Parliament Square. The asset includes office, hotel, retail, and car parking. Cushman & Wakefield also said that: “The deal was reportedly Tasmania’s largest ever real estate transaction.”
Retail also second strongest on record
The sector attracted $1.4 billion in transactions across the first quarter of the calendar year, second only to Q1 2013 when retail topped at $1.6 billion.
Notable transactions included Casuarina Square in the Northern Territory, a property purchased by Sentinel Property Group from GPT for $397 million. EG also acquired half a stake in Logan, Queensland’s Grand Plaza Shopping Centre for $215 million.
State by state
The Cushman & Wakefield Marketbeat report found that the majority of transactions occurred in New South Wales.
- New South Wales, $2.5 billion, 38% of total volume,
- Queensland, $1.4 billion, 22%,
- Victoria, $928 million, 14%,
- Northern Territory, $419 million, approximately 12%,
- South Australia, 6%,
- Australia wide, $375 million, 6%,
- Western Australia, 2.3%.
Foreign investment also dipped, accounting for just 26% of total volume compared to the long run average of 36%.
