Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Market conditions ‘ripe’ for SMEs to buy commercial property

sold signage ta sold signage ta sme logo
Reporter 5 minute read

Now could be a good time for SMEs with SMSFs to acquire their business premises, a commercial lender has suggested.

Thinktank director Per Amundsen said that there are a number of well-known financial benefits of using self-managed super funds (SMSFs) to acquire commercial premises, including tax minimisation and wealth creation.

But on top of these, the commercial lender suggested that market conditions are “ripe” for SMEs with SMSFs to purchase property.

“The secondary market for commercial property can be closely linked to the primary market,” Mr Amundsen explained.

Advertisement
Advertisement

“Rising prices in the latter, in many circumstances, will have a flow-on effect on the former. In particular, tighter vacancy rates in Sydney and Melbourne are pushing prices up across both primary and secondary markets.”

The director cited figures from the Property Council of Australia which show improvements in vacancy rates across all CBD markets due to strong demand, with Sydney and Melbourne expected to have vacancy rates below 4 per cent.

“Falling CBD vacancy rates help underpin commercial property prices right across the market. There’s a ripple effect flowing out from this CBD activity, so for SMEs it’s an ideal opportunity to either sell their commercial premises to their SMSF or use their fund to acquire premises,” Mr Amundsen said.

He added that there are similar opportunities for SMEs in the manufacturing and construction sectors.

“The industrial property market, where Thinktank has 43.6 per cent of its loan book at $363 million, is benefitting from a stronger manufacturing sector with the ACCI-Westpac Survey of Industrial Trends for the June quarter rising [by] 4.4 points to 63.8,” the Thinktank director explained.

PROMOTED CONTENT


“Manufacturing continues to benefit from local apartment and infrastructure projects that are still boosting demand, with 37 per cent of businesses expecting the general business environment to strengthen over the next six months.”

Mr Amundsen said that this “paints a positive picture for industrial property”, further reinforced by stable rental rates in most cities (except Perth) but with yields continuing to tighten Australia-wide.

[Related: ]

Market conditions ‘ripe’ for SMEs to buy commercial property
sold signage ta
TheAdviser logo

Grow your business exponentially in 2022!

Discover the right strategies to build a more structured, efficient and profitable businesses at The Adviser’s 2022 Business Accelerator Program.

Visit the website here to secure your ticket.

sold signage ta

 

more from the adviser
Finsure rebrand

Breaking News

Finsure sale clears regulatory approval

APRA has given the green light to BNK offloading its mortgage agg...

house sold

Breaking News

Hot Property: The biggest property headlines from the week 17-21 January

The weekly round-up of the biggest news stories from across Momen...

mortgage growth

Breaking News

AFG broker lodgements hit new record

Brokers aggregating under the group wrote a record $92 billion of...