Monthly Update Feb 2021 | Koste Chartered Quantity Surveyor

 

Hi, Welcome to our Monthly update!

 

Hi Mark Kilroy here from Koste

This is our second snapshot monthly report for 2021.

Well, It has been 12 months since I returned back from an overseas trip to the UK and Hong Kong and a very different place and the environment we are now living in.

Australia does seem to have faired very well globally with the pandemic with the property markets significantly being affected.

With more than 3000+ residential reports completed annually, Koste are one of the largest Tax Depreciation providers in Australia. We have found a 10% drop in residential report sales in February comparing the previous year pre covid and a 30% increase in the same period on commercial services.

Overall, I do believe the Australian Property Market going well, although not in the typical areas we are used to.

Prior to Covid, many office workers considered it a necessity to travel up to 2hours each way to work from a CBD location, with very few having the option to work from home. Businesses had to embrace change and implement new technologies and accept employees to work from home.

It is now reported from the Fair Work Commission that Fewer than 5% of office workers sent to work at home during the pandemic want to return to the CBD office on a full-time basis.

Many are now looking for the flexibility to work remotely, with many now moving to regional locations or even interstate!

Whilst it is reported to house prices are down in capital cities, regional areas are now seeing a growth of more than 20%.

Australia is still closed to the rest of the world and will like to be until 2022. The net Population growth and immigration have now stagnated.

Job keeper Payments and record low-interest rates have kept the property market buoyant. Buyers are looking for lifestyle changes.

For the commercial property market, this has also changed……

Koste reported an increase of 30% on commercial services this February, mainly due to the increase in hospitality transactions, and increased demand for medical-related properties.

The global pandemic has had a major impact on the global economy and commercial real estate has been one of the hardest hit.

With physical facilities including offices and retail premises closing and reopening with lockdowns, businesses are looking at creative ways to digitize their business whether eCommerce or working from home.

There is now a low demand for leased spaces, with companies now under pressure to minimize costs.

Depreciation has always been used as a tool to assist businesses with spending. The governments support included the instant asset write off of $150,000 which finished on 31 December 2020

The Good news is….  the ATO has temporarily raised this limit to an unlimited amount for most businesses until 30 June 2022.

Koste provides clients with the option to utilize instant asset write-offs in our detailed reports

Although, you should consult with your accountant or finance team to first check your eligibility first.

I will report back on our updates in a month’s time and I do thank you for listening….

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