Commercial Market Confidence Slowly Returns
Commercial property sentiment has improved for a consecutive quarter.
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While Australia has fared better than most countries in its response to COVID-19, the commercial market has taken a hit.
The recovery from the pandemic amplified recession is now, slowly, starting to find the commercial property market sentiment according to NAB’s quarterly commercial sentiment survey which – through its Commercial Property Index – saw expectations for capital values and rents lift to a still weak -35 pts, well below the overage of 0 pts.
Overall sentiment towards the commercial property market lifted in all states in Q4, although still negative, ranging from -64 pts in VIC to -11 pts in QLD and WA. Market conditions are expected to remain negative in all states in the next 12 months except in WA (+8 pts), with VIC (-51 pts) the least confident.
Longer-term confidence however looks more positive in most states, except VIC (-16 pts) and NSW (-5 pts), with WA (+34 pts) highest.
Sentiment is not consistent across all commercial sectors, CBD hotels registered a score of -64 pts, Retail -58pts and Office -41pts, the industrial sentiment rose sharply (-25 pts) pointing to demand for online retail and requirements for warehousing and logistic spaces as the cause.
Expectations for a stronger near-term recovery in economic activity has boosted overall confidence levels in commercial property markets with an expectation to measure +2 pts in two-years.
On the development front, an above average 54% of property developers plan to start new works in the short-term (next 6 months), up from 39% in Q3.
Further, the rental outlook across commercial markets is less decisive, with Retail (-3.9% & -1.8%) and Office (-2.7% & -1.4%), with the outlook weakest in the Eastern seaboard states. The outlook for Industrial rents (1.4% & 2.1%) has however improved sharply.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Scheduled auctions fall to winter levels as vendors hold back on going to market
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Grand final fever and the long weekend have dampened scheduled auction activity this weekend, CoreLogic reports.
The number of homes scheduled for auction this weekend is set to halve, with 1,324 properties listed, marking the quietest week since mid June. Melbourne will experience the quietest week since Easter, CoreLogic data shows, with 223 homes prepared to go under the hammer. In Sydney, 805 properties are expected to go to market, the lowest number in seven weeks.
With long weekends in Queensland and South Australia, numbers are also down in Brisbane (111) and Adelaide (86), less than half the properties available for auction the previous week. It’s a less dramatic drop in Canberra, where 83 homes are scheduled for auction, down -22.4 percent on the previous week.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
