Capital City Office Markets

THE CBD VACANCY rate for Sydney currently sits at 4.1%. And for Melbourne, it’s now at 3.8%.

As you would expect, overseas events have caused some hesitancy in the market. And the Sydney CBD can be rather sensitive to the global economy.

That said, recent reports show local business confidence growing – with stability appearing to return, after the recent election. [Read more…]

The Pendulum Has Swung

WHAT AN AMAZING election result … although, I had always felt it would be a lot closer than everyone thought. Now many people are now asking how the pollsters could have got it so wrong?

In actual fact, they weren’t that far out. Rather, it was more a heavy bias in media coverage which fanned the Labor fever.

So, How DID the Coalition Manage to Win?

[Read more…]

Residential and Commercial Property Cycles

.
Investment-Cycles

WHERE ARE WE right now? And what actually determines the Cycles for each sector?

As it happens, most people believe every sector is quickly affected by interest rate movements. Whereas, that’s not strictly true.

And where interest rates do have an effect … the actual timing of that also varies. [Read more…]

Commercial Property Yields Firm As Activity Improves

.
Commecrial-Property-Investing

FURTHER EVIDENCE of an underlying strength in the Commercial property market is now provided by the latest IPD/Property Council index.

PCA-Cap-RtaesDuring 2013, you saw investors (both local and overseas) stride out from the shadows of the Global Financial Crisis. And as this graph confirms, every sector has displayed a healthy improvement in selling yields. [Read more…]

Surge in Confidence Bodes Well for Commercial Property

.
Commercial-Property-Confidence

COMMERCIAL PROPERTY stands to benefit from the recent improved business trading figures — which have soared to a 2-year high. And these now fall into line with the NAB Survey’s confidence levels.

As such, many forecasters believe these latest figures (together with the growth in house prices over the past 12 months) now reflect the underlying strength of Australia’s post-mining economy.

Therefore, further interest rate reductions expected by the RBA are unlikely to occur any time soon — if at all. [Read more…]

Why The RBA Held Fast on Interest Rates … And How That Affects Commercial Property Investors

Interest rates on holdSOME PUNDITS seemed to be genuinely confused, and others even disappointed with?the RBA’s decision at its last meeting.

However, those closely studying what’s really been happening over the past 6 to 9 months were not surprised in the slightest.

Producer Price IndexSure, a weaker Producer Price index (and a benign underlying inflation at 2.3%) certainly gave the RBA plenty of flexibility. [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…]

Commercial Property: Where Should You Invest, Right Now?

PCA Office Survey provides a snapshotEVERY SIX MONTHS, the Property Council of Australia (PCA) conducts a nation-wide survey on the state of the Office market around the country.

The accompanying graph will give you a quick snapshot of where things currently stand.

However, even the Commercial property market has been subject to the influences of the much talked about “2-speed economy”. [Read more…]

Australia, the Global Economy and Commercial Property

GERRY HARVEY appeared to sum it up fairly well in a recent interview:
“It was unusual to have such a poor sentiment at a time when Australia’s economy was relatively strong compared to America and some countries in Europe.”

Overseas Property Investors are currently very active Harvey feels Australia has an economy regarded as strong by outsiders. And yet there is a total lack of confidence, and businesses are therefore suffering.

Overseas investors are actively targeting Australian Commercial Property — accounting for around half of all sales of over $30 million. Whereas, local investors remain hesitant. [Read more…]

Retailing Set to Rebound in 2013

THE FIRST half of 2012 has been rather dismal for retailers. Figures coming out of the ABS tend to confirm anecdotal evidence that retailing is doing it tough.

And none more so than department stores, fashion and electronics. Whereas, food and entertainment remain the only bright spots. [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…]