VIC Market Overview with Matthew Wright & Zomart He

Q. How does the property market in (VIC/ NSW/WA/SA etc) compare to other states at the moment and what are some key trends that are occurring?

A. “We are very fortunate at Burgess Rawson to be under the same ownership structure across the entire eastern seaboard which enables us to work in all different markets right across the country. One of the key trends we’ve seen is the strength of regional assets across Australia. Investors are willing to look at all areas of the country now rather than the traditional capital cities and inner metro locations. We have seen demand and growth for properties in Far North Queensland where the market didn’t suffer the same effects from Covid as other regions around Australia. So much is the growth of Far North Queensland we have recently opened an office in Townsville which will facilitate the servicing of the Far North Queensland region.”

Q. What sectors are most in demand?

A. “When the pandemic was declared, Australia went into a period of uncertainty including the entire property market. All owners, potential purchasers and property professionals were flying a little blind as to where it all may end up. Fast forward to today and looking back throughout the pandemic and post pandemic, we were fortunate our business went from strength to strength due to the assets we specialise in ‘Essential Service’ investments becoming the most sought after assets and sectors within the commercial investment market. Essential Service investments include: fuel, supermarkets, medical, childcare, supermarkets; which have the ability to trade through all conditions, are still the most in demand assets today.”

Q. What do you see as the biggest challenges that face buyers and sellers in todays market?

A. “Naturally the biggest challenges we are seeing is rising inflation, interest rates, construction costs, labour costs and supply chain issues all influencing the market in different ways. Sellers in most cases are after ‘unconditional’ or ‘clean’ sales which again we are fortunate to offer through our iconic portfolio auctions however, when we are dealing with more complicated sales and or development sites, it is important to ensure we are in full and transparent dialogue with prospective purchasers to ensure we fully understand what issues they are currently facing and how that may affect them in their purchase. This enables us to keep our vendors fully up to date and work through complications that can enable some creative deal structures that maximises our clients value but also make it easier for purchasers to complete in the current environment.”

Q. Who have been key investors over the last 18 months and have you seen a shift from previous years?

A. “We have seen a huge shift in new investors entering the market over the last 18 months for assets under $5,000,000-$6,000,000 price point. Commercial investments are fast becoming more understood by the wider Australian investment community. We are witnessing high levels of capital floating in the market and have seen an increase from first time commercial investors, syndications and SMSF’s. We are fortunate to offer properties that suit most potential purchaser’s budgets from $500,000- $100,000,000 plus.”

Q. What is your secret to achieving the exceptional results that you have?

A. “There are a number of reasons why we have been able to achieve such exceptional results for such a long period. Our agency and agents’ ability to be specialists within specific asset classes and be at the forefront of trends within those markets gives us the ability to give our clients the very best advice. Whether that’s advice on a purchase or advice lease structures ensuring clients are getting the right advice is paramount to our business. Another key reason we have been able to achieve exceptional results is our iconic Auction Portfolio. Now up to auction 155, the way in which we present properties to the market has enabled us to not only achieve outstanding results for our clients but gain the trust of the investor community that when they purchase a property through Burgess Rawson, they know it’s a quality asset that’s been clearly presented to the market.”

Q. What are some of the most significant or rewarding projects that you’ve been involved in and why?

A. “We are so fortunate at Burgess Rawson to work across a whole mix of asset classes and right across Australia. Some of our most significant and rewarding projects have been the sale of Chadstone Ford and Hungry Jacks in Chadstone and Chateau Yering. Both assets were sold by Expressions of Interest campaigns culminating in multiple bids. Chadstone Ford and Hungry Jacks was located on a significant 6,953sqm site and was leased to Chadstone Ford and Hungry Jacks but had plenty of future development upside through favourable planning controls. Chateu Yering was built in 1854 and contains 32 guest rooms on a 101 HA site.”

Q. What advice would you give property developers today?

A. “As previously mentioned, we are acutely aware of external factors that are influencing the market and particularly developers and ultimately the wider development market. We have made a shift to ensure we run our campaigns right to the end date which will enable developers to be able to complete their due diligence to full effect without the property being sold prior. We are also ensuring our dialogue and discussions with developers when purchasing sites is fully involved from the outset. Why? This will enable us to facilitate full feedback to our clients and ultimately be more creative and ensure potential flexibility which will enable deals to still get done within the development market and be mutually beneficial to both parties.”