According to new research, Queensland’s commercial property market is now comparable to that of New South Wales and Victoria.
National Australia Bank (NAB) revealed a number of positive signs in its Quarterly Australian Commercial Property Survey for the second quarter. In fact, the primary index, which measures positive sentiment among respondents, jumped six points to +11 over the three-month period when compared with the previous quarter.
NAB noted that this is the highest score the index has achieved since the survey began more than five years ago. The organisation’s chief economist, Alan Oster, described the results as “encouraging”, particularly as optimism was high across all market segments.
“Positive returns are forecast for retail and industrial property in the next one to two years, with office rents to also resume growing modestly in two years’ time as excess supply begins to work out of the market, especially in Queensland,” Mr Oster explained.
Commercial property owners or buyers looking to invest should contact a conveyancing expert to ensure an experienced professional is at hand to deal with every stage of potential transactions.
Meanwhile, a lack of confidence among developers may mean fewer projects are set to go ahead. The NAB index showed 48 per cent of developers are looking to commence new work in the coming six months, down from 58 per cent in the first quarter.
This trend could have a knock-on effect for the residential building sector, with more companies moving resources to commercial property. According to NAB, 39 per cent of developers currently hope to start new office, retail or industrial projects – a notable increase from the 26 per cent who said the same earlier this year.
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