Media release - 10^th September, 2012

SMSF investor sentiment on the rise in Brisbane

Multi-award winning commercial real estate office, Raine & Horne Commercial Brisbane North, reports an increasing number of investors are using self-managed super funds (SMSFs) to purchase commercial property in Brisbane.

The leading commercial office collected a number of honours at the prestigious Raine & Horne National Awards, held in Melbourne recently, including the highly respected Top Commercial Office (Dollar Value) award for the third year in a row.

“I am extremely proud of the effort our team has put in this year,” says Trent Bruce, Principal of Raine & Horne Commercial Brisbane North, who also snagged the gong for Top Commercial Salesperson (Auction Listings).

In addition, Lawrence Temple grabbed third in the Top Commercial Salesperson (Leasing Dollar Value) category.

A significant portion of Raine & Horne Commercial Brisbane North’s success, according to Mr Bruce, has been generated by investors using their SMSFs to purchase commercial investments.

“We’ve definitely seen more investor sentiment enter the market, with a trend towards SMSFs, especially in the last six to nine months,” says Mr Bruce.

As an example, Mr Bruce recently auctioned four strata-title commercial spaces at Chermside, where each property was purchased by a SMSF.

“These four commercial properties sold for between $165,000 and $525,000, and anything below the $1 million price point is considered fair game for SMSFs.

“With commercial rental yields around 8.5% in the current market, it’s not hard to see why many investors are using their DIY super funds to maximise the strong returns,” says Mr Bruce.

That said, owner-occupiers are also making their presence felt in Brisbane’s commercial property markets.

“For many business owners, it can be a cheaper option to buy a commercial property and lease it back themselves, rather than to rent the space from a third party.

“The combination of low interest rates, softer rental yields and affordable commercial prices are encouraging small business owners and investors to seriously consider purchasing a commercial property,” says Mr Bruce.

Yet, despite the appeal of buying a commercial property, commercial leasing remains a popular option.

“I would estimate leasing represents approximately 70% of all transactions in commercial volume turnover in Brisbane’s north,” says Mr Bruce, who nominates precincts near the new M7 airport-link such as Stafford, Nundah and Chermside as leasing hot spots.

Moreover, traditional industrial precincts such as Geebung, Virginia and Brendale have also been strong performers.

“In addition, suburbs in Brisbane’s outer north such as North Lakes are attracting a wide range of interest, and are expected to develop even more with the arrival of supermarket giant Costco and IKEA.”

For commercial sales and leasing, contact Raine & Horne Commercial Brisbane North on 07 3352 8900.

For further media information contact:

Trent Bruce, Principal Raine & Horne Commercial Brisbane North on 0423 591 528

Andrew Harrington, National Marketing & Communications Co-ordinator on 02 9258 5400