REA Insights Commercial Search Report – 22 June

Searches for properties for purchase and lease on realcommercial.com.au climbed again last week as businesses start re-examining their requirements.

Over the past week, the number of searches for properties for sale on realcommercial.com.au increased by 1.1 per cent, marking the second consecutive weekly increase and the 11th increase in search volumes over the past 12 weeks.

Search volumes have now increased by 17.4 per cent relative to a year ago and are 94.4 per cent higher than they were at their recent low 13 weeks ago.

The two smallest markets, Northern Territory and Australian Capital Territory, have recorded the largest year-on-year increases in for sale searches, while the most moderate increases have occurred in Tasmania and Queensland.

Since search volumes bottomed 13 weeks ago volumes have more than trebled in Australian Capital Territory and they have more than doubled in New South Wales, Victoria, South Australia and Northern Territory. Tasmania is the only state in which search volumes haven’t risen by more than 50 per cent.

Like searches for properties for sale, lease searches last week also rose for the 11th time over the past 12 weeks, up by 4.6 per cent.

Lease search volumes are now 27.6 per cent higher than they were a year ago and they have risen by a substantial 177.9 per cent over the past 12 weeks. The 177.9 per cent increase highlights just how little businesses were thinking about their office leases as lockdowns commenced and equally highlights how much they are now considering their requirements.

Western Australia, Tasmania and Australian Capital Territory were the only states in which lease search volumes fell last week, while double-digit increases were recorded South Australia and Northern Territory.

Relative to last year, all states recorded a higher number of searches last week, however, Australian Capital Territory has seen volumes rise by less than 10 per cent with New South Wales and Victoria recording the largest increases.

Lease search volumes have trebled since their recent low in Northern Territory and more than doubled in all other states and territories. Again, Tasmania experienced a relatively smaller increase than the other states.

Businesses are clearly now interested in their premises as lockdowns continue to ease with both for sale and lease search volumes climbing. As the economy continues to re-open and economic support measures are eased I would expect that tenancy requirements and costs will be something closely monitored by business. Given this, search volumes are expected to continue to trend higher over the coming weeks.