By Dexus Research Originally published by Dexus on 25 July 2016.

The implications of 'lower for longer'

The Australian Real Estate Quarterly Review Q3 2016 reports on the outlook for Australian office, industrial and retail sectors.

The focus this quarter is on how a ‘lower for longer’ interest rate environment could affect commercial real estate.

Key points covered in this edition include:

  • The investment climate is supportive of real estate values as we move into FY17
  • The global uncertainty we have seen this year emanating from China, Europe and the Middle East has served to highlight the attractiveness of Australian commercial real estate
  • Low interest rates are supporting investment demand for real estate as investors seek a relatively stable yield
  • The realisation that interest rates and inflation may stay ‘lower for longer’ means that investors are reducing the level of returns they expect from assets, including real estate
  • In addition, occupier demand for office and industrial buildings on the east coast, particularly NSW, is firming due to positive business conditions and solid employment growth
  • The result is that real estate is providing solid returns. A-REITs and unlisted property delivered total returns over the past year of 24.6% and 13.4% respectively

 

Download the full reportPDF

Other articles about research
Research
10 Australian Real Estate Quarterly Review
Research
5 Sharemarket volatility unlikely to derail office demand
Article
3 Planets align for industrial property
Research
10 Australian Real Estate Quarterly Review
Research
5 Australian Real Estate Quarterly Review
Research
3 Conditions for office demand remain resilient
Article
3 Sydney office market still strong
Research
4 Sydney CBD office demand benefits from positive indicators
Research
10 Australian Real Estate Quarterly Review
Research
10 Australian Real Estate Quarterly Review
Research
2 Disrupportunity: Why change is different now
Research
3 Conditions for Sydney CBD office demand are the best in seven years
Research
6 What will be the role of office buildings in the future?
Video
2 Benchmarking Sydney's Performance 2017
Research
6 Unprecedented connectivity: What will it mean for office users?
Research
4 Lead indicators for office demand reach highest level in six years
Research
10 Growth cycle fuels strong unlisted property returns
Research
3 Leading indicators point to improving take up in Sydney
Research
10 Strong start to the year for office markets
Research
5 Year starts on a brighter note for office demand
Research
7 2017 Upside and downside risks finely balanced
Research
10 Corporate trends shaping take-up of office space
Research
5 Solid run in Sydney CBD office demand
Research
10 Property performing well. What next?
Research
5 Tenant demand for Sydney offices remaining positive
Research
5 Share market volatility likely to be main swing factor for office demand

Subscribe to our mailing list

By providing your details you give Dexus permission to email you about this site

These links are external to the Dexus website and will open in a new window.