Rebound for commercial property predicted in 2009

Font size :

The commercial property market is expected to rebound next year, according to the LJH Commercial Property Market Monitor 2008, which reports a bullish short-term outlook for the commercial property market and an even stronger rebound in 2009.

Chairman of LJH Commercial Glen Peterson said the report - released in association with BIS Shrapnel - emphasises current market sentiment.

"The global credit crisis has certainly interrupted this year's upswing, and as a result we're seeing plenty of opportunities from our network of commercial offices across Australia," Peterson said.

"The report highlights that the current credit squeeze is only a temporary setback to the overall upward trend, with conditions pointing towards a strong rebound next year. There are astute investors in the market who are continuing to benefit from this year's setback, with some unique property investments delivering good value."

According to the report, current demand for commercial property is strong and vacancy rates are tightening, which is pushing up rents.

"Demand levels remain strong at this stage, which means vacancy rates should remain low and rental returns should continue to grow for investors," Peterson said.

The medium-term outlook paints a different picture, however, with the report highlighting that some commercial markets across Australia will have moved into a new, downturn phase of the property cycle.

Sydney's commercial market is likely to shift upwards and perform strongly.
"This predicted upturn in Sydney's commercial property market five years from now is a good reminder that each market is in a different phase of the property cycle," Peterson added.
"Some markets are up while others are down, and there isn't a single national property market, but rather a divergent series of markets across Australia that are at different stages of the investment cycle. A good example is the continuing buoyant conditions in markets associated with Australia's resources boom - those markets continue to benefit from many businesses expanding as a result of the increase in activity driven by the resources sector."

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

Quirks in the QLD property market investors should be aware of Quirks in the QLD property market investors should be aware of

Interstate buyers should familiarise themselves with these quirks to avoid investment blunders Read more

CBA unveils new repayment simulator CBA unveils new repayment simulator The simulator will show customers the differences between different types of repayments ... Read more

How to tell when a housing market is cooling How to tell when a housing market is cooling You need to check clearance rates, listings, and the price gap, among other factors ... Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Sep 27, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
  • How much do you want to borrow?
  • How much deposit do you have?
  • How much is your house worth?
  • How much do you still owe on your mortgage?
  • What type of mortgage do you have?

  • How much is your new home?
  • How much do you want to borrow?
  • How soon do you want a mortgage?
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords