Commercial real estate sentiment at all time high

Commercial real estate sentiment at all time high

3 March 2017

National Australia Bank

 

According to the National Australia Bank’s Commercial Property Survey, the positive sentiment in the commercial property market is at its highest level since the Survey began in 2010. The ANZ Property Council Survey agrees and has also reported an increase in confidence.

The bank’s chief economist Alan Oster said the sentiment is the result of gains in CBD hotels and office space, with lower sentiment in retail and industrial markets. Sentiment is also higher in both New South Wales and Victoria, compared with Queensland and Western Australia.

“This is good news to start 2017. This data says that the industry is optimistic about the coming quarter. We see good expectations in terms of economic growth, capital values and forward work schedules”, said Ken Morrison, Chief Executive of the Property Council of Australia.

Office property is expected to provide the best income returns in the next 1-2 years, led by very strong growth in New South Wales. Retail and industrial rents are predicted to grow modestly in all states except Western Australia.

 

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