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According to one of the real estate company in Australia, commercial property is becoming the major interest of majority of property investors due to APRA’s lending regulations.
The real estate agency Gunning Commercial notices that there is a rise seen in commercial investment in the suburban areas of Sydney. Malcolm Gunning says, “We believe local investors are now moving away from residential properties and are seeking suburban commercial and retail investments which have good returns with development upside, resulting from the Baird government’s changes to zoning for many of the established suburban retail strips”.
He further added, “These properties have been a sleeper in comparison to residential properties, and their appeal has activated due to rezoning of areas like Rockdale, Kingsgrove, Revesby and Bankstown to B4 Mixed Use that allows retail, office and residential development”.
Seeing this scenario sites are planning for ground level retail businesses and the upper floors as residential apartments.
At this Mr. Gunning said, “These strips are in close proximity to the new improved public transport hubs, and after the upgrade to the railway lines, they are very desirable because the infrastructure is already in place. Buyers are looking for properties with a 4 per cent yield and potential growth”.
News Source: www.realestatebusiness.com.au/breaking-news/10400-investors-moving-towards-commercial-property