Welcome | 5 At a Glance - The KeyMarket Drivers Investors seeking solid assets in an uncertain world Sharemarket volatility, the fall of speculative investments such as cryptocurrencies, and rising inflationaredriving investors to tangibleassetsofferingattractive returns. Commercial property fits this bill, with the potential to deliver healthy net yields and long termvalue growth. Low interest rates Interest rates in Australia continue to be low by historical standards despite a recent uptick in the cash rate by the Reserve Bank. Even as interest rates normalise to pre-pandemic levels, it is still often cheaper for a business to purchase its premises rather than lease. This is driving intense demand from owner occupiers, especially in the industrial property market. A return to ‘normal’ For two years ourway of living and doing business has been reshaped by the COVIDpandemic. But this is changing. Consumers are returning to bricks and mortar shops, offices are seeing a return of workers, and Australia has re-opened its borders to the world. As we welcome new arrivals to our country – be they immigrants or tourists, sectors such as retail and tourismwill rebound, and this will underpin demand for commercial property. Tight supply For several years now, the boom in residential property values has seen commercial properties make way for residential developments. Coupled with limited development of new industrial estates, many Raine & Horne commercial experts are reporting a significant undersupply of commercial properties. An ongoing shortage of new commercial developments suggests the current supply/demand imbalance could continue for some time.
RkJQdWJsaXNoZXIy MTI3ODI1