Here’s a good Investment Opportunity

Having survived the unintended barrage of postings last week, I just thought you needed a short break. Anyway something has now come up, which I thought you might wan to hear about.

About 6 weeks ago, I alerted you to an investment opportunity in the CBD. It was a strata office for around $240,000 with good depreciation benefits.

The interest from our eBulletin subscribers was quite amazing. And, during the ensuing fortnight, we had strong enquiry; plus a number of positive inspections … culminating in a rather quick sale.

As it turns out, I now have something similar close to the CBD.
[Read more…]

Vietnam … Asia’s 2nd Fastest-Growing Economy

You are always reading about how China has been breaking annual growth records. And then it was India’s turn to steal the limelight.

But after throwing off the Soviet shackles, Vietnam signed an accord to roll back trade barriers with the USA. And its stagnant economy has literally leapt into action.
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Economy tipped to enter new Golden Age

One of Australia’s leading economic forecasters has predicted a new golden age of growth for the economy as the problems of worker shortages and production bottlenecks are solved amid a continuing boom in demand for commodities.

Canberra-based consultancy Access Economics predicts Australia’s gross domestic product will soar 4.6 per cent in 2007, compared with just 2.9 per cent this year, representing the strongest annual growth rate since 1997-98.
[Read more…]

Recent 2-day Property Seminar

A couple of weekends ago, I spoke at a 2-day Seminar in Sydney organised by Wealth Creator Magazine. My session was all about the *Emerging Trends in Commercial Property*.

As a regular subscriber, you are pretty much kept up to date with those trends through the eBulletins you receive — and now, via these regular Updates. However, several people at the seminar showed a keen interest in how you go about successfully structuring an acquisition.
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Melbourne CBD Office Market

According to the latest Property Council of Australia data (July 2006), the Melbourne CBD recorded a staggering net absorption figure in the last six months of 173,121 sqm, bring the total absorption for the last twelve months to 213,159 sqm.

These are the highest six and twelve month net absorption figures for Melbourne since PCA records began in 1990.

“Read more”:/assets/2006/10/31/MelbourneCBDOfficeMarketIndicatorsReport-Spring2006.pdf …

Brisbane CBD Office Market

Conditions have tightened across the market reducing total vacancy of prime stock to 1.4% and secondary stock to 2.8%. With the mining and resource boom the primary driver of the market, demand is strong and supply is restrained.

“Read more”:http://www.colliers.com/Content/Repositories/Base/Markets/Australia/English/Market_Report/PDFs/BrisbaneCBDOfficeMarketIndicatorsReport-Spring2006.pdf …

Building Activity – ABS

In the June quarter 2006, the seasonally adjusted estimate of total building work done rose in all of the states and territories except Tasmania (-9.1%). The largest rises were in the Northern Territory (+17.6%), the Australian Capital Territory (+15.5%) and Western Australia (+12.6%). “Read more”:http://www.abs.gov.au/ausstats/abs%40.nsf/mf/8752.0?OpenDocument …

This would seem to add weight to what I covered on the “Australasian Construction Climate”:http://www.gal.com.au/FREE-eBulletins/Current-eBulletins/Emerging-Issues-2.html#climate in the March eBulletin.

Australasian Labour Market Statistics – ABS

In 2005-06, more than two-thirds of employed men aged 15-19 years worked in the Retail trade (42%), Construction (15%) or Manufacturing (11%) industries. Most of those working in Retail trade were employed part-time (77%), though part-time workers were much less prevalent in the Construction (14%) and Manufacturing (20%) industries.

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Commercial Yields are Firming

Property Investment Research estimates that yields on Retail property have sunk to 5.75%, on Office property 6.75% and on Industrial property 7.5%. And some of the major players are starting to look off shore to satisfy the expectations of the members of the Funds. “Read more”:http://www.his-best.biz/files/CommercialYieldsFirm2.pdf …

In an earlier eBulletin, we also gave you an analysis of how “Commercial yields”:http://www.gal.com.au/rsl/private/show/archive/eb2002-12.html vary over time.

Sydney Suburban office – Still Active?

The demand for suburban offices is strong, and construction is underway for 848,000 sqm of space across some 90 projects.

Land Mark have just released a “detailed report”:http://www.lmw.net.au/research/Byte/061004.pdf showing you the latest facts and figures.

Melbourne Suburban Office Market sets pace

Hawthorn has been the pacesetter in Melbourne’s suburban office market this year with limited opportunities for new development and tenant demand for extra or improved space driving up rents and pushing down vacancies.

But while Hawthorn — and particularly Burwood Road — in the inner east has been red hot, the opposite story has come out of the suburbs of Mount Waverley and Mulgrave, where an over-supply of office stock has failed to be absorbed and rents have been stagnant.

“Read more”:/assets/2006/10/31/Offices-SE-Suburbs1.pdf …