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commercial property

This tag is associated with 80 posts

24 Oct 2019 (AFR) – Foreign cash flood into commercial hits record $20b

(24 October 2019, AFR, p26, Ingrid Fuary-Wagner, Reporter) ‘The inflow of foreign capital into commercial property hit a record $20 billion in the year to September, and is likely to continue on a similar trajectory as overseas investors seek attractive yields and find relative value with a low dollar. Foreign investment activity over the year … Continue reading

5 Oct 2019 (AFR) – Investors ignoring growing global economic risks, RBA warns

(5 October 2019, AFR, p6,  Karen Maley, Columnist) ‘Global equity, bond and commercial property markets could suffer savage sell-offs if investors, who have until now been remarkably complacent about risk, suddenly wake up to the deteriorating global outlook. In its October Financial Stability Review, the Reserve Bank highlights the darkening global outlook, as economic activity has … Continue reading

3 Oct 2019 (AFR) – Commercial property confidence slumps after post-election surge

(3 October 2019, AFR, p32, Michael Bleby, Senior Reporter) ‘The property industry’s post-election confidence bounce was short-lived, with the peak body’s latest quarterly survey of sentiment dropping back on concerns about sluggish economic growth and land tax dragging on sentiment in SA and Queensland. Industry professionals’s confidence about the coming December quarter dropped 10 points … Continue reading

29 Aug 2019 (AFR) – Commercial property returns slump to nine-year low

(29 August 2019, AFR, p31, Su-Lin Tan, Reporter) ‘Commercial property returns have been hit by weakness in the retail real estate sector, falling to 8.3 per cent in the past year, the lowest result since 2010. The Property Council/MSCI Australia Annual Property Index tracks performances of more than 1500 assets held in both listed and … Continue reading

9 Aug 2019 (AFR) – Commercial property rebounds as office, industrial outperform

(9 August 2019, AFR, p34, Bo Seo, Reporter) ‘Growing confidence in the commercial property market, led by gains in the office and industrial sectors in the eastern states, has brought a major indicator of sentiment back into the black. The NAB Commercial Property Index rose nine points to +7 in the second quarter of 2019, … Continue reading

8 July 2019 (AFR) – Commercial property deals hit $42.6b record

(8 July 2019, AFR, p31, Nick Lenaghan, Property Editor) ‘A series of trades in landmark office towers has helped propel the tally in commercial real estate deals for the 2019 financial year to a record $42.6 billion, a 22 per cent increase in transactions value over the previous year. The Cushman & Wakefield figures also … Continue reading

6 June 2019 (AFR) – $1.8 billion of big ticket Brisbane properties in play

(6 June 2019, AFR, p32, Ingrid Fuary-Wagner, Reporter) ‘Deep-pocketed investors with an eye on Brisbane’s CBD are more spoilt for choice than ever before, with about $1.8 billion worth of big-ticket commercial properties on the market or in due diligence. Owners of large-scale towers in the Queensland capital are cashing in on fresh interest from … Continue reading

9 April 2019 (AFR) – Far East picks up Bourke Street development site in $90m deal

(9 April 2019, AFR, p31, Nick Lenaghan) ‘Hong Kong-listed developer Far East Consortium has shrugged off negative sentiment around the housing market to take over a 68-level apartment project in central Melbourne in a $90 million deal. Far East’s move effectively represents the first sign of a big player positioning for the next stage of … Continue reading

15 Jan 2019 (AFR) – Commercial property deals fall 9pc as transaction market enters downturn

(15 January 2019, AFR, p29, by Larry Schlesinger) ‘Transaction activity in Australian commercial real estate has entered a cyclical downturn with new figures from CBRE showing the value of deals fell 9 per cent to $32.8 billion in 2018 in part due to a major slump in Chinese investment. Over the same period, the volume … Continue reading

1 Nov 2018 (AFR) – Regional correction: small investors facing losses on service stations, childcare and shops

(1 November 2018, AFR, p35, by Larry Schlesinger) ‘Self-managed super funds, mum-and-dad investors and wealthy individuals who poured hundreds of millions of dollars of cheap debt into service station investments in regional towns on the promise of high returns are staring down the barrel of significant losses as demand for such property plummets. A new report by … Continue reading

25 Oct 2018 (AFR) – Malls change hands at record rate: $10 billion in deals

(25 October 2018, AFR, p39, by Nick Lenaghan) ‘Investment into malls has soared to a record 12-month high, with $9.98 billion worth of retail property changing hands by September this year. The figures, compiled by Savills Australia, show deal flow has risen by about one-third over the previous 12 months to September, defying some negative sentiment hanging … Continue reading

22 Oct 2018 (AFR) – Retail worries weigh on commercial property sentiment: NAB

(22 October 2018, AFR, p31, by Nick Lenaghan) ‘Overall sentiment in commercial property markets has fallen to a two-year low as fears for the retail sector weigh more heavily, according to the quarterly NAB commercial property survey.. The index overall – covering the office, retail, industrial and CBD hotel sectors – fell nine points to a low of…’ Read more … Continue reading

1 Aug 2018 (AFR) – ‘End of the cycle feel’ for commercial property, but good stock still in demand

(1 August 2018, AFR, p33, by Su-Lin Tan) ‘The commercial property market has an “end of the cycle feel” despite continued solid sales, agents, buyers and sellers at Burgess Rawson’s latest commercial auction in Sydney say. Even with tight bank lending, the commercial property market showed more buoyancy than residential markets, with 11 out of 16 properties … Continue reading

26 July 2018 (AFR) – Funding for developments set to worsen – Commercial property sentiment wanes: NAB survey

(26 July 2018, AFR, p37, by Nick Lenaghan) ‘Sentiment in the commercial property market has fallen as the outlook in the booming hotel sector eased and retail expectations remain negative, according to a quarterly National Australia Bank survey. The index overall – covering the office, retail, industrial and CBD hotel sectors – fell four points … Continue reading

12 July 2018 (AFR) – Sydney, Melbourne rush squeezes (office) vacancy rates

(12 July 2018, AFR, p32, by Nick Lenaghan) ‘The rush for space in central Sydney and Melbourne has helped to drive the national vacancy rate sharply lower to 9.4 per cent. The figures for the second quarter of 2018, compiled by JLL, show the national vacancy rate has dropped by 1.5 percentage points over the … Continue reading

14 Apr 2018 (AFR) – RBA raises debt concern in April financial stability review – Ignore RBA’s worries at your peril

(14 April 2018, AFR, p6, by Jacob Greber) ‘For an institution that has just given the nation’s financial system another bill of good health, the Reserve Bank of Australia actually seems quite worried. Buried not far beneath the surface of the latest Reserve Bank’s twice-yearly financial stability review lurks a litany of concerns with a … Continue reading

12 Apr 2018 (AFR) – Big demand for large spaces in Sydney

(12 April 2018, AFR, p38, by Nick Lenaghan) ‘The demand for large amounts of space in Sydney is surging as major corporates look to expand. Sydney recorded a 32 per cent increase in demand for 3000-square-metre-plus workspace over the last quarter and a 63 per cent increase compared to the first quarter last year, according to Colliers International.’ Read … Continue reading

28 Feb 2018 (TheAge) – Inbound Chinese investment slumps – drops 60pc to $2.8b

(28 February 2018, The Age, Business, p30, Carolyn Cummins) ‘Regulatory changes and tightening lending conditions has had a toll on total Chinese outbound investment into Australian commercial property, with a fall of 60 per cent reported in the past year. According to new data, the total has collapsed from a value of $6.97 billion in … Continue reading

7 Dec 2017 (AFR) – Auction flop highlights gap between buyers and sellers

(7 December 2017, AFR, p32, by Larry Schlesinger) ‘A commercial property portfolio auction delivered the lowest clearance rate of the year, highlighting the gap between vendor expectations and what investors are willing to pay, even for blue-chip assets. CBRE’s final Premium Portfolio auction of the year was well attended and had multiple bidding on all … Continue reading

30 Nov 2017 (AFR) – ‘It’s obvious’ office asset values are ‘unsustainable’: JPMorgan

(30 November 2017, AFR, p31, by Nick Lenaghan) ‘Commercial office values are at a 30-year high, an unsustainable level that could prompt major landlords into a $5 billion sell-off, according to JPMorgan. The in-depth analysis of recent office tower trades and upcoming valuations is the most stark yet in a series of mounting signals that … Continue reading

1 Nov 2017 (AFR) – Commercial yields narrow to 4 percent – Red Rooster in Sydney’s Mount Annan sells on 4pc yield as investors compete

(1 November 2017, AFR, p39, by Su-Lin Tan) ‘A 4 per cent yield has become the new normal for mum-and-dad investors, as commercial yields continue to compress. There were 156 bids for the heavily contested Red Rooster retail property at 249 Waterworth Drive, Mount Annan, 60 kilometres south west of Sydney, auctioned by Burgess Rawson … Continue reading

10 Aug 2017 (AFR) – Vendor ‘greed’ and funding woes stifle sales – Hungry Jack’s passes in on yield of 4.2pc: ‘It’s just greed’

(10 August 2017, AFR, p38, by Larry Schlesinger) ‘A stand-off between “greedy” vendors and finance-constrained buyers delivered a modest 50 per cent clearance rate at a commercial property portfolio auction in Melbourne on Wednesday, raising fears of a correction in values.’ Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

2 May 2017 (AFR) – Commercial property heading for a peak, but no crash

(2 May 2017, AFR, p31, by: Larry Schlesinger, Nick Lenaghan, Su-Lin Tan) ‘The sale of a major Sydney office tower on a record low 4.6 per cent capitalisation rate has reignited concerns about a commercial property bubble building, with the Reserve Bank further warning about the sustainability of current pricing in its Financial Stability Review … Continue reading

20 Apr 2017 (AFR) – Demand for commercial loans surges – up 25 per cent

(20 April 2017, AFR, p32, by Larry Schlesinger) ‘The number of commercial mortgages applications to acquire offices, warehouses, shops and development sites surged almost 26 per cent in the first quarter of the year compared with a year ago, according to new figures from credit data provider Equifax. The figures, which build on a 22.5 … Continue reading

6 Apr 2017 (AFR) – Commercial deals hit $5.4b in first quarter of 2017

(6 April 2017, AFR, p29, by Larry Schlesinger) ‘Commercial property deals hit a record $5.4 billion in the first quarter of 2017, with investors showing an increasing appetite  for risk due to a lack of premium CBD opportunities.’ Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

6 Apr 2017 (AFR) – Australian commercial property fully valued: fund manager survey

(6 April 2017, AFR, p29, by Larry Schlesinger) ‘The vast majority of Australian institutional and private investors believe the country’s commercial property market is at or near its full value. A survey of 240 fund managers, investment bankers, A-REIT analysts, superannuation fund managers, valuers, financiers, private investors and real estate agents found that only 16 … Continue reading

5 Apr 2017 (AFR) – Commercial property auctions clear 80pc

(5 April 2017, AFR, p33, by Su-Lin Tan) ‘Appetite for Sydney commercial property remains strong with a portfolio auction on Tuesday achieving an 80 per cent clearance rate. The lowest yield achieved at the Burgess Rawson auction was 4.4 per cent on a Red Rooster-anchored property at 157 The Entrance Road in Erina on Sydney’s … Continue reading

23 Feb 2017 (AFR) – Positive sentiment for commercial property highest in seven years

(23 February 2017, AFR, p32, by Nick Lenaghan) ‘Confidence in the commercial property sector is at its highest level ever on the back of a boom in hotels and strong returns from city office towers, according to a National Australia Bank survey. The bank’s Commercial Property Index has risen five points to…’ Read more at … Continue reading

1 Feb 2017 (TheAge) – Back to the future as (commercial property) yields top 2007 peak

(1 February 2017, The Age, BusinessDay, p23, Nicole Lindsay) ‘Australian commercial property values reached an all-time high by the end of 2016, out-pacing the levels achieved in 2007 on the eve of the global financial crisis. The move, underpinned by bond rates, has JP Morgan analyst Richard Jones tipping the market’s peak in his 2017 … Continue reading

12 Jan 2017 (AFR) – Commercial deals slumped 20 per cent to $27b in 2016 due to lack of stock

(12 January 2017, AFR, p27, by Larry Schlesinger) ‘A lack of prime grade property for sale rather than weaker investor demand drove a 20 per cent fall in the value of commercial property transactions last year, according to figures from real estate group Savills Australia.’ Read more at AFR.com (might need AFR login access, or … Continue reading