'Volatile': Gladstone office block 'risk rating' upgraded for investors
NOT one Gladstone office has been sold this year.
Property experts at Heron Todd White say buyers are likely waiting for a sign that the market has hit rock bottom before investing.
"[It's] indicative of buyers being speculative and cautious and waiting for some indication that market conditions have stabilised and bottom out," the report states.
The property analysts suggest the market for office accommodation "will remain volatile and the number of transactions will remain low" until there is are signs that the market has bottomed out, according to the report.
Heron Todd has also upgraded the "risk rating" for investors from three months ago, saying businesses closing or vacating at a faster rate has left landlords with little guarantee of a long-term tenant.
Declining demand also continues to push down rental prices.
"Lack of sales to investors is a result of the lack of quality investment properties for sale that provide a strong tenant and long lease term at an asking price that reflects the associated risk of local market conditions," the report states.
But Knight Frank's Peter White said one of the primary reasons office sales were low is because there aren't many for sale.
Mr White said commercial and industrial property is pretty tightly held, with investors looking to long-term gains.
"The first question I ask people when they come and tell me they're going to sell is, 'why'?" he said.
"Because at the end of the day, where else are you going to put your money?"