August 30 REA Insights Weekly Commercial Search Report, 2021

Searches to buy commercial property bounced back last week, though remain below peak levels.

Buyer searches on realcommercial.com.au increased by 2.9% last week, with growth seen in every state and territory except Tasmania. Compared to 12 months ago, buyer searches are now 20.3% higher.

The Australian Capital Territory saw the strongest weekly rise in buyer searches. This followed a plunge in searches a week earlier following the implementation of Canberra’s first lockdown in over a year. South Australian and New South Wales followed, with weekly searches up 9% and 5% respectively.

Compared to 12 months ago, buyer searches are up in every state and territory, with the strongest year-on-year rises seen in South Australia (38.6%), Victoria (30.9%) and Queensland (27.4%).

Searches to lease commercial property held steady over the week, rising by just 0.1%. Compared to 12 months ago, however, they are 10.1% lower.

Weekly lease searches showed mixed movement across the states, with declines in Victoria (-5.5%) and Western Australia (-0.4%) offset by increases in the remaining states and territories.

Lockdowns are continuing to significantly impact the confidence of businesses to make leasing decisions and, compared to 12 months ago, lease searches are lower in most states.

New South Wales and the Australian Capital Territory have recorded the largest 12 month drop in lease searches, which are down 30% and 36.1% respectively.

Overall, both buy and lease searches have proved to be sensitive to lockdown restrictions, and there has been significant volatility in search volumes over recent months.

However, demand from buyers appears to be recovering faster, with rising vaccination rates buoying confidence in Australia’s ability to open up by the end of the year.