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Commercial property returns performing well

Commercial property returns have performed well in the year to June 2013, according to new data.

Commercial property has performed well in the year to June 2013, new data from the Property Council/IPD Australia All Property Index Q2 has shown.

It found that there was a total return of 9.1 per cent over the six-month period, which comprises of a 7.3 per cent income return and 1.7 per cent capital return.

The figures show that listed infrastructure in Australia was the best performing asset class during this time, displaying considerable return variability.

Providing a broad measure of returns for commercial property investment in the country, the latest index results indicate a softening of the market, which is likely to persist until there is a significant strengthening and macroeconomic activity.

Commenting on the results, Dr Anthony De Francesco, executive director of IPD Australia and NewZealand, said: "The latest index results demonstrate that the return performance for the Australian commercial property market continues to soften."

He added that this is consistent with existing demand in the core property sectors and underpinned by slow retail sales growth.

Posted by Ravin Chatlani

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