Sentiment in australias commercial property
Post on 14-Apr-2017
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Sentiment in Australias
Sector is on the Rise
Despite tough economic conditions, Australias commercial property sector has remained
strong. As a matter of fact, a study conducted by National Australian Bank indicates that the
sentiment in the industry is still rising with notable improvements in the outlook of retail
According to the financial institution, positive signs have emerged as the Commercial Property
Index increased to a four-year high. Victoria and NSW are the most optimistic states, while
interest is strongest in CBD hotels. The report, however, notes that the confidence level
continues to vary by market sector and across states.
Economic Growth Expectations
Industry professionals explain that commercial property is now the source of Australias
economic growth. To come up with the conclusion, NAB analysed the condition and direction
of the market rather than focus on the outlook.
Expectations for economic growth remain positive, and there are strong hopes on workloads,
resources boom and hiring intentions. The message to government is that they have to keep this
going,Property Councils chief executive, Ken Morrison, said in a statement. State governments
need to focus on approvals and planning. And, the national government needs to make sure that
the tax reform and foreign investment settings continue to support the sector.
A 2015 Colliers International Global
Investor Sentiment Survey shows that
Australian property investors are the
most confident in the world when it
comes to property investment
conditions. Researchers say that the key
factors contributing to high levels of
confidence are improving global
conditions and strong economic growth.
About 83 per cent of investors are
expecting an increase in investment
volumes, while only 5 per cent believes
that it isgoing to decrease. In Australia,
more and more investors are showing
attention in the industrial sector and
moving in secondary office markets.
The majority of investors still prefer to
invest locally. The finding from the latest
NBA research reveals that growing
sentiment is enough to support price
growth in commercial property.