Industrial Property Starts to Makes Sense

Industrial-Property
INTERESTINGLY, the Industrial property market in metropolitan Melbourne still remains the largest in Australia.

The market has evolved significantly over the last two decades — largely underpinned by the strong growth in supply chain sectors (ie: the transport, logistics and distributions sectors).

In addition, there has been significant infrastructure investment, population and workforce growth … along with the entry of major institutions and developers. [Read more…]

Melbourne Office Market is Holding Its Own

Melbourne-OfficesMELBOURNE is Australia’s second-largest office market, and has remained relatively resilient since 2010.

A range of factors supported this, including … limited new supply and growth in absorption (driven by Australia’s economic recovery during that period).

Underlying Strength

On the demand side in particular, the size and diversity of Melbourne’s white-collar workforce was a key reason supporting the market’s resilience, although on-going staff reductions in the finance and government sectors is lessening demand. [Read more…]

How Will the Global Scene Impact Commercial Property?

The disparity in global Office Yields makes Australian Commercial property very appealing to overseas investors.YOU NEED to look “behind the curtain” … and not allow yourself to become concerned by the recent headlines. Just remember: Media companies need to make sure their newspapers sell.

Last week, share market speculators drew breath rather sharply … as China’s 3-month growth in GDP to March, came in at “just 7.7%”.

True, this was down from the expected 7.9%; but it was still in line with China’s overall growth, throughout 2012.

However, let’s get real: Compared with anywhere else in the world, 7.7% is clearly an enviable figure. [Read more…]

Commercial Property: The Interest Rate Dilemma

Interest-RatesSHOULD YOU be fixing the interest rate for the term of your investment loan … or simply running with the best variable rate?

Lurking behind that question is another concern: Will interest rates fall any further; and if so, by how much?

The Case FOR a further Interest Rate Cut [Read more…]

Does a Solid Sales Increase in February Mean the Retail Sector is Now Back?

Strip Centres are still strugglingYOU WILL quickly find that there are two different schools of thought:

  1. After much hibernation, Retail property is set to surge again.
  2. With the high dollar, and growth in online shopping, the Retailing has much catching up to do.

Despite Australia having been mostly sheltered from the global financial crisis, retailers (especially in strip shopping centres) have been doing it rather tough.

Before the GFC, Retail property yields had plummeted. In some cases, as low as 3.5% per annum — with investors clamouring for what they saw as “sexy property”. And they believed values would always increased dramatically. [Read more…]

How Quickly The Mood Has Changed For Commercial Property!

Has The Penny Dropped?OVERALL, people appear to have returned from their Christmas break with a renewed sense of confidence — certainly as far as Commercial property is concerned.

In a recent article, I covered the reasons for this change.

However, investors are also being buoyed by the past two weeks of solid economic data — including a welcome boost to Australia’s trade balance, as well as retail turnover increasing by 0.9% during January. [Read more…]

Commercial Property: Looking Ahead

Confidence is now returningTHROUGHOUT the last half of 2012, you would have seen our articles consistently predicting a turn-around in confidence, early in 2013.

And more particularly, we also explained why there would be a rebound in China’s growth — following transition to the new Administration. [Read more…]

Buying Commercial Property? Make Sure You Choose Wisely

Real GDPIN ALAN MITHELL’s article last Saturday (AFR: page 15), he discussed a recent report from the OECD — which outlined the growing pressures upon the Australian economy for structural change.

Apparently, the centre of gravity for global activity is gradually moving.

Centre of Gravity is coming closer to AustraliaAnd as the table shows, this is moving closer to Australia; and will bring with it an increase in … specialisation, innovation, productivity and income.

However, as a Commercial property landlord, you will only continue to be successful if you can quickly identify those businesses benefiting most from what’s occurring.

You have already seen a shift in manufactured goods offshore; as well as the car industry unwisely being subsidised by government. [Read more…]

Commercial Property & The Economy … It’s Purely a Confidence Issue!

The TrueEconomic Picture

THE REST of the world looks upon Australia with envy. And you only need to scan these graphs to understand why.

It all comes down to a feeling of comparative well-being.

Australians have had it so good, for so long … that the current slower pace somehow makes us feel gloomy — because it’s simply “not normal”.

Meanwhile, most other countries just wish they were in our position. [Read more…]

More on Industrial Property …

ONLY RECENTLY, I flagged the emerging opportunity being provided by Industrial property. But I felt it was important for you to understand the underlying reason for that.

In a nutshell, it comes down to our persistently high dollar.

What?s driving the dollar crazy?

In last weekend’s Financial Review (page 24), Joanna Heath posed the following question:

Can you name Australia’s second-largest export?

She went on to point out that it’s not … coal, gas or wheat. Instead, it is actually Australian Commonwealth Bonds! [Read more…]

Are There Genuine Signs of The Long Hibernation Being Over?

Emerging from HibernationIN VARIOUS recent articles, I’ve tried to explain how Australia’s underlying fundamentals are actually very solid.

And by most measures, our economy seems to be travelling at close to its full capacity.

However, the contradiction is that Australia’s budget should now be running at a substantial surplus. And the reason it’s not relates to a number of structural issues. [Read more…]