Sentiment in australias commercial property

Download Sentiment in australias commercial property

Post on 14-Apr-2017

60 views

Category:

Investor Relations

0 download

Embed Size (px)

TRANSCRIPT

  • Positive Outlook:

    Sentiment in Australias

    Commercial Property

    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

    sector.

    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.

    Confident Investors

    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.

    Resources:

    http://www.sentinelpg.com.au/commercial-property-investment http://www.businessinsider.com.au/nab-confidence-across-australias-

    commercial-property-sector-has-jumped-to-a-four-year-high-2015-5

    http://www.afr.com/real-estate/property-confidence-continues-to-support-hopes-

    for-the-economy-20150421-1mpoc6

    http://www.sentinelpg.com.au/commercial-property-investmenthttp://www.businessinsider.com.au/nab-confidence-across-australias-commercial-property-sector-has-jumped-to-a-four-year-high-2015-5http://www.businessinsider.com.au/nab-confidence-across-australias-commercial-property-sector-has-jumped-to-a-four-year-high-2015-5http://www.afr.com/real-estate/property-confidence-continues-to-support-hopes-for-the-economy-20150421-1mpoc6http://www.afr.com/real-estate/property-confidence-continues-to-support-hopes-for-the-economy-20150421-1mpoc6