Commercial property has been flat for last 5 years in Perth but signs are emerging that some types are in demand. Small warehouses and workshops under $400k are being sought by yield hunters. When you compare the numbers for reidential units and commercial there is a big difference. Many people are buying off the plan 1 bedders in Perth for around $400k plus. The rent is around $450 and may fall with the number of new complexes hitting market. Small commercial units can be bought for $250k and rent for $330. When you consider commercial tenants pay the outgoings the real rent is worth %80pw more. Talking to commercial agent on Friday who is having his busiest quarter since 2006. Yeah they all say that but when you do a search of established areas like, Osborne Park, Malaga and Balcatta there is not much available. Commercial is different to residential and you can easily buy a dud or wait years for the area to become established. Interesting times, will the excitement of a new government last or wear off.
