|
|
 |
|
Viewing report
|
|
|
|
Australia Real Estate Report Q1 2012
Business Monitor International, Nov 2011, Pages: 60
Business Monitor International's Australia Real Estate Report provides industry professionals and strategists, corporate analysts, real estate associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Australia's Real Estate industry.
National Australia Bank’s commercial property survey for Q3 2011 described the short- term outlook for retail property as subdued and forecast to remain negative through much of 2012, although the industrial market was expected to bottom in 2011, with a relatively strong recovery in 2012.
Global Property Guide has noted that since the November 2010 increase in interest rates to 4.75%, Australian real estate values have fallen.
The Australian commercial real estate market continues to be fairly balanced because, structurally, the industry operates in a way that restricts over-development.
The industry sits in an economy that, despite weak consumer sentiment and structural changes, is performing reasonably well. The economy and sector are underpinned by resources and demand from China, a reducing threat of interest rate rises, low unemployment and a strong infrastructure sector. Property services firm CB Richard Ellis has said that it has detected the long-awaited emergence of Chinese investors into the direct Australian commercial property markets.
On the residential property side, figures from the Australian Bureau of Statistics show the average value of a home across the nation's state capitals fell by 1.9% on an annual basis in June 2011. Politically, the ALP government continues to rely on the support of a small group of independent MPs, causing potential instability.
Treasurer Wayne Swan has said the IMF's annual report on Australia's economy is a strong endorsement of the government. It said the economy’s performance since the onset of the global financial crisis has been enviable.
Some of the key opportunities in the real estate market include:
- There is a resources boom in Australia at present, built significantly but not entirely on exports to China. This is putting money into the economy and bolstering downstream industries.
- Following the GFC most Australian REITs have deleveraged to a large degree and now have capacity, by way of undrawn facilities among other measures, to invest as opportunities arise.
- The Australian commercial real estate market continues to be fairly balanced because, structurally, the industry operates in a way that restricts over-development. Careful bank lending policies meant that when demand for space dropped off in 2008 and 2009 there was not suddenly a glut of vacant property.
- The natural disasters in Queensland at the beginning of 2011 are providing a significant lift in the level of work for the construction industry and businesses that supply the industry. Also, monetary policy will be kept accommodative in order to drive the post-disaster recovery efforts, although the effects of this will taper off as work is completed.
The Australian economy is in essentially sound shape.
- Some key risks to the current real estate market are:
- A weaker-than-expected growth outturn in China would lead to weaker economic performance for Australia, given that Chinese demand is the largest driver for Australian exports, including coal and iron ore.
- Weakening investor sentiment could result in a subdued market during 2012.
- There is a widening gap between the flourishing resources sector and the rest of the economy.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
