Archives for October 2009

Australian Commercial Property is Runnning Its Own Race

16 October, 2009 by Leave a Comment

Unlike the US and Europe, Australia has not suffered a banking crisis. Therefore, our banking system is still capable of providing credit for normal growth.

With the US unemployment rate approaching 10%, this will delay any quick turnaround for the Commercial property sector.

Decoupling from the US

Decoupling from the US

As you would expect, there is a strong correlation between high unemployment, tenancy contractions and falling commercial property prices. And as a result, a reluctance by banks to provide credit.
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Filed Under: Economic Issues, Global Scene, Investment Objectives, Offices, Property Cycles, Your Exposure Tagged With: , , , , , , , , , , ,

Thankfully, The RBA Displayed
The Courage of Its Convictions

8 October, 2009 by Leave a Comment

Clearly, many households and first home buyers will have reason to complain … but someone had to step up and show leadership. And it certainly wasn’t going to be the Labor Party.

The RBA's Reasons for Increasing Rates

The RBA's Reasons for Increasing Rates

By increasing the official cash rate from 3% to 3.25%, the RBA has signalled its intention to ensure Australia’s financial future remains the envy of the world.

Rather than simply basking in the recent praise from the IMF and other G20 members.
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Filed Under: Economic Issues, Interest Rates, Investment Objectives, Property Cycles Tagged With: , , , , , , , , ,

Commercial Construction
Outlook Remains Soft

7 October, 2009 by Leave a Comment

While Australia’s overall business expenditure has remained fairly strong, our Commercial construction and infrastructure outlays are expected to decline by at least 10% this financial year.

Construction OutlookBCI Australia is forecasting project construction of some $63 billion 2009-10, which is about $7.7 billion down on that for 2008-09.

In all but for Victoria and South Australia, there was general over construction during the past few years. And therefore, you are not likely to see new Commercial construction pick up, until mid-2010.And that’s good news as far as impending cost rises, for anyone planning a new project.
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Filed Under: Economic Issues, Offices, Property Cycles Tagged With: , , , , , , , , , , , , , , , ,