THE retail property market in Sydney, Melbourne and Brisbane will lead the recovery trend whilst the other commercial property sectors will be fashionably late, according to a survey of industry experts.
The Australian Property Institute Directions Survey predicts in one year’s time, retail property in Sydney, Melbourne and Brisbane will bounce back.
And the office and industrial property markets will follow suit, taking up the recovery trend in two years.
According to the respondents, the retail property sector will bottom by the end of the year and currently stands at 5 o’clock, on the API’s property clock.
By next year in 2010, retail property will be on an upswing and in two years time the recovery retail and other commercial property sectors will be moving along positively.
The survey found respondents are now more evenly split between predicting no movement in yields to increasing yields for commercial, industrial and retail property in the short to medium term.
Meanwhile respondents’ think the impact on property of the price movements and volatility on the stock market over the next 12 months have improved since April this year.
In April, the vast majority of respondents saw an adverse impact on commercial, industrial, retail property, listed and unlisted trusts / syndicates and now the vast majority see a beneficial to neutral impact.
Predictions for the impact on residential property remain the best among the property classes with 65% of respondents seeing a beneficial impact.
Australian Property Journal
