Perth’s office market kicks with $ 1 billion in listings tipped

“Getting people in and out of the state has made a big difference, and there were a number of campaigns that were held off last year because of border closures,” Mr Desange said.

“We will see a flurry of stock and I estimate there is about $ 1 billion of office [space] that that will come to market over the next four months. ”

Nick Rathgeber, international director of capital markets for Cushman & Wakefield, part of the team selling the 12-storey building at 81 St Georges Terrace, said the border reopening meant Perth was “now a fully functioning market”.

“Real estate is a tangible asset class – you’ve got to be able to touch and feel it. People just want to get there and see it – that will definitely help a lot, ”Mr Rathgeber said.

He expected strong interstate and potentially international interest in the building, which is 99 per cent leased to the West Australian government and has an annual income of more than $ 7 million. It is being sold with a price guide of more than $ 90 million,

John Williams, head of capital markets at JLL in Western Australia, is selling London House, a 17-floor A-grade office tower with hopes of between $ 115 million and $ 120 million, for Hawaiian, a big property investor controlled by the Wen family.

Mr Williams, who is working on the sale with agency Cygnet West, said the border reopening already had changed the buyer mix. He referred to the recent $ 16 million sale of a smaller, 4500-square-meter building at 186 St Georges Terrace.

“For the first time in a couple of years, we got bids from Singapore,” he said, confirming the property had been bought by a private local investor.

“The first tranche of people coming across and into Perth were those asset managers who hadn’t seen their assets for two years, [and] the second wave was the transactional people. ”

He said the West Australian economy was strong, leading to relatively buoyant leasing demand, which was underpinning investor interest in better quality buildings.

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