Concern over the potential impact of rising interest rates is the biggest challenge facing Australian property firms in the next year, experts have suggested.
According to Bloomberg, a recent commercial property index from the National Australia Bank has revealed that fear over increasing prices could cause problems for real estate companies.
In addition, funding is also a prevalent issue for businesses in the current economic climate, with consumer confidence diminishing quickly.
However, despite the difficult situation, the survey revealed that the hotel and office market remains positive, despite the deterioration of industrial conditions.
Although uncertainty about the property market appears to be growing, the country's current interest rate of 4.75 per cent is the highest among the world's most advanced economies.
Meanwhile, the Australian dollar has jumped to a record high against US currency after a government report revealed consumer price inflation had risen more than expected during the second quarter.
Posted by Craig Francis
According to Bloomberg, a recent commercial property index from the National Australia Bank has revealed that fear over increasing prices could cause problems for real estate companies.
In addition, funding is also a prevalent issue for businesses in the current economic climate, with consumer confidence diminishing quickly.
However, despite the difficult situation, the survey revealed that the hotel and office market remains positive, despite the deterioration of industrial conditions.
Although uncertainty about the property market appears to be growing, the country's current interest rate of 4.75 per cent is the highest among the world's most advanced economies.
Meanwhile, the Australian dollar has jumped to a record high against US currency after a government report revealed consumer price inflation had risen more than expected during the second quarter.
Posted by Craig Francis
