November 2nd REA Insights Weekly Commercial Search Report, 2020
Commercial search volumes fell last week as restrictions were eased in Melbourne.
Last week there was a 3.0 per cent fall in searches for properties for sale, which was the first decline in search volumes in three weeks.
For sale search volumes increased marginally last week in New South Wales (0.1%) but fell elsewhere with the smallest fall in Northern Territory (-2.2%) and the largest falls in Tasmania (-8.3%) and Australian Capital Territory (-6.6%).
At a national level, weekly for sale search volumes were 3.0 per cent lower than their historic peak.
New South Wales was the only state in which for sale searches reached a new record-high last week and they were only marginally lower in Northern Territory (-2.2%) while the largest falls have been recorded in Tasmania (-19.9%) and Victoria (-9.2%).
While for sale search volumes are down from their peak, they have increased by 20.6 per cent relative to the same time last year.
The largest year-on-year increases have been recorded in Northern Territory (107.0%) and Australian Capital Territory (73.5%) and the smallest in Victoria (8.2%) and Queensland (14.6%).
Lease search volumes fell last week for the first time in three weeks and were 1.7 per cent lower over the week.
Lease search volumes rose in Western Australia (1.4%) last week and were unchanged in New South Wales but fell elsewhere with the largest falls being registered in South Australia (-6.9%) and Tasmania (-6.4%).
Nationally, lease search volumes last week were 5.5 per cent below their peak and lower across all states.
Tasmania (-26.6%) and Australian Capital Territory (-20.6%) have recorded the largest overall falls in lease searches from their peak while Queensland (-6.0%) and New South Wales (-7.3%) have seen the smallest falls.
Compared to lease search volumes at the same time last year, last week they were up a significant 33.0 per cent and higher throughout each of the states.
The smallest year-on-year increases in lease searches have been recorded in Australian Capital Territory (15.0%) and Tasmania (18.0%) and the largest in Northern Territory (42.1%) and New South Wales (32.1%).
While the volume of searches for commercial properties fell last week they remain close to historic highs and much higher than 12 months ago.
As the economy continues to recover and assuming infection rates remain low, businesses can start to make much clearer plans for their future. Whether those plans are expansion or contraction, for many their accommodation needs are likely to change.
Given this I expect that we will continue to see a heightened volume of commercial property searches over the remainder of 2020 and I would expect that to continue into 2021.
