Positive Outlook:

Sentiment in Australia’s

Commercial Property

Sector is on the Rise

Despite tough economic conditions, Australia’s commercial property sector has remained

strong. As a matter of fact, a study conducted by National Australian Bank indicates that the

sentiment in the industry is still rising – with notable improvements in the outlook of retail

sector.

According to the financial institution, positive signs have emerged as the Commercial Property

Index increased to a four-year high. Victoria and NSW are the most optimistic states, while

interest is strongest in CBD hotels. The report, however, notes that the confidence level

continues to vary by market sector and across states.

Economic Growth Expectations

Industry professionals explain that commercial property is now the source of Australia’s

economic growth. To come up with the conclusion, NAB analysed the condition and direction

of the market rather than focus on the outlook.

Expectations for economic growth remain positive, and there are strong hopes on workloads,

resources boom and hiring intentions. ‘The message to government is that they have to keep this

going,’Property Council’s chief executive, Ken Morrison, said in a statement. ‘State governments

need to focus on approvals and planning. And, the national government needs to make sure that

the tax reform and foreign investment settings continue to support the sector’.

Confident Investors

A 2015 Colliers International Global

Investor Sentiment Survey shows that

Australian property investors are the

most confident in the world when it

comes to property investment

conditions. Researchers say that the key

factors contributing to high levels of

confidence are improving global

conditions and strong economic growth.

About 83 per cent of investors are

expecting an increase in investment

volumes, while only 5 per cent believes

that it isgoing to decrease. In Australia,

more and more investors are showing

attention in the industrial sector and

moving in secondary office markets.

The majority of investors still prefer to

invest locally. The finding from the latest

NBA research reveals that growing

sentiment is enough to support price

growth in commercial property.

Resources:

http://www.sentinelpg.com.au/commercial-property-investment http://www.businessinsider.com.au/nab-confidence-across-australias-

commercial-property-sector-has-jumped-to-a-four-year-high-2015-5

http://www.afr.com/real-estate/property-confidence-continues-to-support-hopes-

for-the-economy-20150421-1mpoc6