NAB Quaterly Australian Commercial Property Survey – June Quarter

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Lemon Baxter recently participated in the National Australia Bank Property Survey.

The report shows NAB’s Commercial Property Index has slipped to a new low of -16 points in the second quarter of 2012, as fewer property professionals expect positive capital or income returns. Retail and industrial market participants are very pessimistic, but expectations are also softer in office and CBD hotel markets. Western Australia is the most optimistic state in nearly all sectors, with Victoria the most pessimistic, especially in regards to retail and industrial property.

Other highlights include:

  • Gross rents were reported to be weaker in all markets and expectations softer across the board
  • Property professionals reported a kick up in vacancy rate expectations in all property segments, with national vacancy rates expected to decline in all markets over the next two years
  • Consumer confidence is still seen as the biggest challenge facing property firms
  • Market supply in the national office and industrial property markets was assessed as “neutral”, but the retail market was “somewhat over supplied”
  • Expectations on bank pre-commitment requirements have fallen slightly and are expected to continue easing in the next 12 months.

Click below to read the full report.

Download Commercial-Property-Survey-Summary-June-2012-.pdf

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