Australia Real Estate Report Q1 2015 - New Study Released

From: Fast Market Research, Inc.
Published: Tue Nov 18 2014

Australia's commercial real estate market is buoyed by strong fundamentals, with a mature economy, highly skilled workforce, transparent regulation and a welcoming business environment. However, the economy has been posting slower growth; and a slowdown in demand in China, a major destination for Australia's mineral exports, could have an indirect effect on Australia's economy. Overall demand for commercial real estate is expected to remain low because of this, and we are forecasting no increase in rental rates in 2015 and 2016.

The economic outlook is set to remain blighted by the impact of the Chinese slowdown and government austerity, as well as a lack of consumer confidence. We see real GDP growth coming in at 2.4% in 2014 and 2.3% in 2015, well below the 3.8% achieved in 2012. Although there will be a slight pick up towards the end of our forecast period, we still see growth being only 2.9% in 2018. All this will limit job growth and also cause businesses to delay potential expansion plans, affecting the fortunes of the commercial real estate sector.

Full Report Details at

On the upside, there is significant interest in Australian real estate, both commercial and residential, from international investors, particularly those from elsewhere in Asia Pacific, notably China and Singapore. This should ensure that transactional activity remains high.

The office sector is being affected by low demand across the board, although the strongest demand seems to remain for grade A space, which should buoy overall rental rates. There is a significant backlog of new supply set to come online in Sydney, and also in Brisbane. Apart from this, we see the lack of demand acting to reduce the number of new construction projects over the long term.

The retail sub-sector is the one for which we have the most optimism, with our in-country sources continuing to report high demand and low supply, which should buoy rental rates and a good supply pipeline. However, downside risks to our...

The Australia Real Estate Report features Business Monitor International (BMI)'s market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.

BMI's Australia Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in Australia.

Key Benefits

About Fast Market Research

Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.

For more information about these or related research reports, please visit our website at or call us at 1.800.844.8156.

You may also be interested in these related reports:

- Qatar Real Estate Report Q1 2015
- France Real Estate Report Q1 2015
- Croatia Real Estate Report Q1 2015
- Brazil Real Estate Report Q1 2015
- Bahrain Real Estate Report Q1 2015
Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email:
Contact Phone: 1-413-485-7001

Visit website »