Global Power | Local Knowledge | Uniquely Personal

Commercial property returns per...

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

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

Subscribe Now