There may be fears from many homeowners across the nation that the year ahead will see some correction in house prices in Australia, but while there are worries in the residential market, commercial property is now looking forward to yet another good year.
According to Australian Property Institute's survey, both Sydney and Melbourne's commercial property markets are expected to climb in activity, rent and prices between now and 2017, when they are expected to hit their new peak.
For now, there is still space for the commercial market to grow in terms of what can be charged for rent before it hits an affordability ceiling.
"I think there is still an upswing to go in the commercial market," Australia Property Institute New South Wales president George Vallas.
"The view is that there's still a bit of growth into the rental rate and that will drive increased value."
Commercial property has seen something of an improvement in recent years, largely thanks to the fact we've seen a return to health in the business sector. When the financial downturn was affecting companies, there was a real shortage in rental deals for office units.
However, activity has picked up in the last year or so, and that has meant more companies looking for office spaces to rent, which has led to an improvement in the market and much more in the way of interest from investors.
Mr Vallas also went on to say that the air of caution which has made its way into the residential property market in the last few months has yet to make its way into the commercial market, which means many people who would have previously invested in residential units are now changing tactic and looking for commercial property, which pushes demand, and subsequently values, ever higher.
