- $1.26B in sales were recorded in the last quarter - up from $512M the previous quarter
- Notable recent sales included 50% of 200 George St for $575 million
- Before the current lockdown, initiatives were in place to entice workers back to the CBD
Despite Sydney enduring an extended lockdown, commercial property sales in the Sydney CBD have increased in value from the preceding quarter.
66 sales were recorded in the most recent quarter according to CoreLogic, worth $1.26 billion compared to 51 sales for a total of $512 million for the quarter ending May 2021 and 29 sales totalling $2.44 billion for the quarter ending February.
In terms of the year ending August 2021, 185 sales were recorded for a total of $5.55 billion. The year ending August 2020 saw 199 sales for a combined $5.08 billion.
Notable sales include a 50% interest in the EY Centre at 200 George Street in Sydney for $575 million.
60 Carrington Street, an 18-storey office building that was originally built in 1971 and refurbished in 2016, was purchased in two separate transactions by two parties for around $140 million each.
50 Carrington Street, a 19-storey building with a net lettable area of 10,885 sqm, was purchased in two separate transactions for $214 million.
As the below graph shows, the total number of sales and value of sales does not always correlate; while sales rose significantly over summer there was a slight dip in the total number.
Sydney CBD commercial property quarterly sales
Before the most recent lockdowns, workers were slowly returning to the CBD. Initiatives such as the $100 meal vouchers helped to bolster activity across local hospitality businesses.
Back in April, the Property Council of Australia (PCA) also proposed a five-point plan to reactivate Sydney’s CBD.
Time will tell if enough workers return to the CBD post-lockdown to make these investments viable.