Looking for insights into the state of the commercial property market? National Australia Bank has recently released the results of their quarterly Australian Commercial Property Survey.
Key findings include the following:
– Overall market sentiment (measured by NAB’s Commercial Property Index) fell 11 points to -2 in Q1 2019 – its first negative read in over 4 years.
– Income returns are expected to be highest for Office property in the next 1-2 years, with rents to grow fastest in VIC next year and QLD in 2 years’ time. Industrial rents are also set to grow with VIC providing the best returns. Retail rents are expected to fall in all states.
– Capital growth expectations for the next year are the strongest for Office property, with QLD and WA expected to lead the way after a long period of under-performance. Industrial to overtake Retail as best performer in 2 years’ time. But capital returns in the Retail sector are expected to remain very weak over the next 1-2 years with values tipped to fall in all states.
Click here to read the full findings.
