SMSFs driving up Queensland commercial property prices
One national real estate agency has found that the SMSF demand for industrial and retail property in Brisbane is "tenfold stronger than supply".
SMSF investors are among the most active in the Brisbane commercial property market, Trent Bruce, principal at Raine and Horne Commercial, Brisbane North told SMSF Adviser.
"There’s a lack of quality secure industrial and retail property investment opportunities, with demand from SMSFs tenfold stronger than supply," said Mr Bruce.
"Such is the level of demand, we’ve been taking securely leased investments priced between $2 million and $5 million to market, and they’re attracting 70 to 100 enquiries during the course of the sales campaign."
The bulk of the uptick has occurred in the last two to three years, according to Mr Bruce, coinciding with interest rates being at all-time lows.
"Many clients have taken advantage of the perfect storm conditions of historically low interest rates and a lack of available options in the retail and industrial sectors already this year, with many sales completed at record levels," he said.
Mr Bruce cited the example of a recently sold Hungry Jacks head office, which had approximately 100 enquiries when it was put on the market.
"I dare say 90 per cent of those enquiries were from SMSFs," he said.
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