The Impact of Solid Population Growth Over the Past Decade

3 April, 2012 by Leave a Comment

Solid Population Growth underpins Tenant & Buyer DemandEVERYONE seems to be talking about how people are flocking to the mining states … but does that really give a true reflection of what is occurring?

If you take a close look at the statistics, Melbourne is actually leading the country in increased population numbers.

In fact, it has added some 67,000 people during the 12 months to June last year. And Wyndham to the south-west (which includes Werribee) now holds the crown for Australia’s fastest-growing municipality, for the 2nd year running. [Read more…]

Filed Under: Economic Issues, Employment, Investment Opportunity, Market Sectors, Offices, Opportunities, Retail Sector Tagged With: , , , , , ,

Commercial Property and The Current Economy

27 March, 2012 by Leave a Comment

These are Better Indicators of our Economic Well-beingLAST WEEK, we explored just how the misuse of statistics by some commentators was distorting of the truth about Australia’s economic well-being, on a state-by-state basis.

So it is with several other indicators, as David Bassanese pointed out in a recent article (AFR: 22 March, page 36).

Many commentators are pushing for interest rates reductions, because the “economy is soft”. And they list … [Read more…]

Filed Under: Economic Issues, Global Scene, Industrial Sector, Interest Rates, Investment Opportunity, Market Sectors, Offices, Opportunities, Retail Sector, Stability Tagged With: , , , , , , , , , ,

Is The Mining Boom Masking a Major Problem for Commercial Property in Queensland and WA?

20 March, 2012 by Leave a Comment

Queensland & WA will have the greatest amount of Distressed PropertyTHIS RATHER pressing issue appears to be receiving little or no coverage at all.

But if you listen to the insolvency firms, Western Australia is about to become the “hot spot” for distressed property.

And as you can see from the chart, Queensland well and truly holds the the crown at the moment. [Read more…]

Filed Under: Economic Issues, Finance, Industrial Sector, Investment Opportunity, Market Sectors, Offices, Opportunities, Retail Sector, Stability, Using Debt, Your Exposure Tagged With: , , , , , , , , , , , , , ,

Commercial Property: The Suburban Office Market

13 March, 2012 by Leave a Comment

The Suburban Office market is currently your best choiceRIGHT NOW, the Sydney suburban market is trending sideways. And that’s rather good news, because the general consensus was it was about to slump.

While its vacancy rate sits at 9.6%, there is little new space coming onto the market over the next couple of years. [Read more…]

Filed Under: Economic Issues, Investment Opportunity, Market Sectors, Offices, Opportunities, Stability Tagged With: , , , , , , , , , , ,

Commercial Property Snapshot: Retail Within The Melbourne CBD

6 March, 2012 by Leave a Comment

LAST TUESDAY, you gained some insights into the changing Retail scene, for Commercial property around Australia.

According to some recent research by JLL & CBRE (BusinessDay: 29 Feb 2012), these trends are clearly starting to emerge within the Melbourne CBD.

The current vacancy rate is hovering at around 1%. And in part, this is due to the Growing number of people living and working within central Melbourne.

However, part of the reason behind this also lies in the recent entry into the market of several major overseas retailers. [Read more…]

Filed Under: Economic Issues, Global Scene, Interest Rates, Market Sectors, Opportunities, Retail Sector, Stability, Your Exposure Tagged With: , , , , , , , , , ,

Commercial Property: The Changing Retail Scene

28 February, 2012 by Leave a Comment

<span class=THERE WAS an article in The Age last Saturday (BusinessDay) — which provided some fascinating insights into Australia’s retail scene.

Based upon GPT’s national portfolio, some interesting long-term trends are taking shape. And while GPT’s overall earnings actually rose by 7% over the past year … it required a fair amount of “fancy footwork” to achieve that. [Read more…]

Filed Under: Economic Issues, Market Sectors, Opportunities, Retail Sector, Your Exposure Tagged With: , , , , , , , , , , ,

Commercial Property to Benefit From Structural Changes Within the Economy

21 February, 2012 by Leave a Comment

Industry Restructure is necessary for Australia's long-term growth.IN CASE you missed the lead story in last Friday’s Financial Review … the Treasury secretary (Martin Parkinson) was outspokenly critical of the government’s recent handouts to the car industry.

And more particularly, given the recent strong growth in the unemployment figures.

In his view, taxpayers ought not be subsidising so-called “strategic industries” — when these represent inevitable structural changes, which need to occur in order to make Australia more productive in the long-term. [Read more…]

Filed Under: Economic Issues, Employment, Global Scene, Interest Rates, Investment Opportunity, Market Sectors, Offices, Opportunities, Property Cycles, Stability Tagged With: , , , , , , , , , , , ,

How Commercial Property Investors Benefitted From The Past 7 Days?

14 February, 2012 by Leave a Comment

The Reserve Bank believes things are on the up.LAST TUESDAY, the RBA left the cash rate on hold — much to the surprise of most pundits. And yet, only the week before, that’s exactly what I suggest would happened.

You might also remember I suggested that you lock in a fixed rate mortgage — because it was then about 1% below the variable mortgage rate.

Many scoffed, and said that rates will continue to come down. Well, the past 7 days have certainly put paid to that theory — with the big 4 Banks raising their rates, quite out of step with the RBA. [Read more…]

Filed Under: Economic Issues, Finance, Global Scene, Interest Rates, Investment Opportunity, Opportunities Tagged With: , , , , , , , , , , ,

What Will Happen to Interest Rates
When The RBA Meets Next Week?

31 January, 2012 by Leave a Comment

THE GENERAL consensus seems to be that the RBA will further reduce rates by 25 basis points. But can this view be fully justified; and what does all this mean for Commercial property investors?

The RBA faces a real DilemmaMost pundits would point to the recent CPI figures and say “Yes”! And on the surface, an underlying inflation rate of 2.5% per annum is plumb in the middle of the RBA’s stated target zone.

Yet despite what seems to be a rather hesitant mood by consumers, inflation in the service sector actually surged by massive 4.4% per annum. And some other sectors (not affected by overseas competition) also finished the year strongly, growing by 3.9% per annum. [Read more…]

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Commercial Property: Global Influence?

23 January, 2012 by Leave a Comment

Things are picking up within the US EconomyTHE LAST quarter of 2011 saw a definite improvement in the US economy — with consumer spending up, and companies finally replenishing their inventories.

GDP increased by an annualised 3%, with improved sales for durable goods and new homes.

Petrol prices have been cheaper, since mid-2011; and the US jobless rate was the lowest in nearly 3 years.

Therefore, with improved employment figures, consumers have felt more comfortable spending — which represents around 70% of US economic activity. [Read more…]

Filed Under: Economic Issues, Global Scene, Industrial Sector, Investment Opportunity, Market Sectors, Offices, Opportunities, Retail Sector Tagged With: , , , , , , , , , , ,

Commercial Property: What Makes for a Balanced Office Market?

19 January, 2012 by Leave a Comment

EVERY capital city has both a CBD and suburban Office market. And as you can appreciate, keeping tabs on all the various suburban markets is almost an impossible task for most investors.

But generally speaking, the health (or otherwise) of the CBD Office markets within each capital city will provide you with a fairly good gauge of the overall Office scene around Australia.

Accordingly, this graph will provide you with a clear picture of what has occurred over the past 4 years.

As a rule of thumb, Office markets are said to the “in balance”, when their Vacancy Rate lies between 5% and 7%. [Read more…]

Filed Under: Economic Issues, Global Scene, Offices, Opportunities, Property Cycles, Stability Tagged With: , , , , , , , , , , , , , , , , , , ,