The Impact of Solid Population Growth Over the Past Decade

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…]

Commercial Property and The Current Economy

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…]

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

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…]

Commercial Property: The Suburban Office Market

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…]

Commercial Property: When Time Comes to Sell (Part 2)

stealth

Last week, you explored the various Selling methods available to you — which ones were the preferred, and why.

Plus, you were also given some initial insight into the benefits of using Web (or “Stealth”) Marketing techniques. But how does this differ from traditional marketing for Commercial property? [Read more…]

Commercial Property: When the Time Comes to Sell … (Part 1)

WHAT YOU need is a strategy to make absolutely sure you obtain the best possible price when you sell.

You need to put your Buyers under CompetitionAnd you do this by creatively targeting investors, developers and potential owner-occupiers — through adopting a broad (yet cost-effective) marketing campaign, which draws out those buyers best suited to your property.

Choosing The Best Method of Sale

The #1 secret for successfully selling any property is to promote the feeling among your prospective buyers that “they could miss out”.

However, this is difficult to achieve with a straight, Private Sale. In fact, this method generally takes far longer to achieve a result — as it fails to create any sense of urgency in a buyer’s mind. [Read more…]

12 Fundamentals You Need to Follow … When Buying Commercial Property

There are 12 Rules you need to follow to successAS YOU WILL appreciate, being able to sleep at night is one of the key objectives for any Commercial property investor.

And that’s what many property investors refer to as staying below your “Threshold of Insomnia”.

There can be several things that might cause you to lose sleep. One is over-borrowing; and the others are making a poor assessment of the market and the property itself. [Read more…]

Commercial Property to Benefit From Structural Changes Within the Economy

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…]

National Office Market Shows Steady Improvement

LAST WEEK, the Property Council of Australia released its Office Space survey, for the 6 months to January 2012. And this will have some interesting implications for the Commercial property market.

National Vacancy Rates have fallen over the past 6 monthsAcross the 26 markets depicted in this chart … demand was up 20% up and supply 30% down, on the 20-year average for the six-monthly period.

As you can see, total vacancies fell from 9.0% to 7.9% — the lowest since January 2009. And perhaps a quick summary of the CBD Office markets would be worthwhile. [Read more…]

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

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…]

Commercial Property: Global Influence?

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…]