October 6th REA Insights Weekly Commercial Search Report, 2020
Searches for commercial properties for sale and lease fell last week.
For sale search volumes fell by -4.4 per cent last week, which was the first weekly fall in four weeks and the largest fall in eight weeks.
Northern Territory (34.7%) and Australian Capital Territory (1.2%) were the only states/territories in which for sale searches rose last week. The largest falls were felt in South Australia (-9.9%) and New South Wales (-7.2%).
For sale search volumes are -4.6 per cent lower than they were at their peak, with Northern Territory the only state/territory with searches still at a record-high last week.
New South Wales (-8.7%), Queensland (-9.9%) and Western Australia (-9.5%) are the only other states in which for sale searches have fallen by less than 10 per cent from their peak, with Tasmania (-15.5%) and Victoria (-13.9%) having recorded the largest falls.
For sale searches last week had risen by 18.3 per cent compared to the same week last year.
The largest year-on-year increases have been recorded in Northern Territory (113.9%) and Australian Capital Territory (105.2%), with the smallest increases in Victoria (3.6%) and New South Wales (11.2%).
Turning to lease search volumes, they also fell last week, down -3.9 per cent. Lease search volumes are now -10.1 per cent lower than they were at their peak.
Northern Territory (12.1%) was the only state in which lease search volumes rose last week, with the largest weekly falls in Australian Capital Territory (-27.1%) and Tasmania (-10.4%).
Lease search volumes last week were at a historic high in Northern Territory and only -6.4 per cent lower than their peak in Queensland, while Australian Capital Territory (-27.1%) and Victoria (-18.3%) have recorded the greatest overall declines.
Lease search volumes were 30.5 per cent higher last week than they were at the same time last year and they were higher across all states.
Australian Capital Territory (16.6%) and Victoria (19%) have recorded the smallest year-on-year increases, while Northern Territory (64.8%) and Tasmania (44.0%) have recorded the greatest increases.
While commercial search volumes fell last week, the next few weeks will be interesting to watch. In the aftermath of the Federal Budget this week, the behaviour of businesses could start to change, so too could behaviours as restrictions continue to ease.
Search volumes remain elevated relative to a year ago and I expect that will continue to remain the case as businesses more closely assess their accommodation costs in the aftermath of the recession.
