September 2016 :: Trends and Insights
THE MARKET IS LOOKING GOOD
THINGS HAVE NEVER LOOKED BETTER FOR AUSTRALIA’S COMMERCIAL PROPERTY MARKET.
New figures from Colliers International in July revealed Australia achieved a record-breaking $31 billion in commercial property sales in the last financial year, with 44% of that money coming from offshore.
Sydney and Melbourne’s office and industrial markets, in particular, are enjoying a golden era, as are shopping centres, childcare facilities and development sites, which continue to attract record levels of investment.
Agents tell us every week that they simply cannot match the demand for properties across the most popular asset classes. It’s a good problem to have.
Amid a climate of great global uncertainty and with the US and the UK looking increasingly volatile, our local market stands out as one of the strongest and most sought-after destinations for commercial property investment.
Britain’s Brexit vote might have sent global markets into a spin, but that turmoil only served to enhance Australia’s status as a commercial property safe haven, with both local and international buyers chasing opportunities to get in on the action.
Our high-growth economy and low sovereign risk remain key factors that continue to boost Australia’s appeal. Just ask China, which continues to seek out Australian property and has dominated foreign investment in our commercial market so far this year.
We’ve also seen the Coalition government reelected, albeit narrowly, and that’s a win for the commercial property market, with the Coalition promising to resist changes to negative gearing laws, to lower company tax rates and to potentially reintroduce the Australian Building and Construction Commission, which will smooth dispute processes for developers and crack down on lawlessness in the construction sector.
With population growth continuing to be a key driver of property demand, predictions that Australia’s population is forecast to swell at more than double the rate of other major global markets are yet another shot in the arm for our market. That demand will almost certainly see a new wave of commercial property developments in the coming years, particularly in our capital cities, which will further reinforce our global reputation.
Posted 31st August 2016
Source: http://agent.realcommercial.com.au/news/the-market-is-looking-good/
