A RECENT SURVEY conducted by CBRE has revealed growing investor demand for industrial property – at the expense of the retail sector.
This would appear to be mainly driven by the increasing need for warehouse space by online retailers – and in particular, Amazon.
There’s been a Changing of the Guard
As selling yields have gradually compressed, Melbourne has now replaced Sydney as the top Australian city in the Asia-Pacific region.
Apparently, Melbourne has risen from 8th in 2017, to now be second behind Tokyo. Whereas, Sydney has slipped from 1st to 6th position this year; with Brisbane now sitting in 8th position.
And even though Victoria covers just 3% of Australia’s area, it apparently contributes about a quarter of the country’s GDP (and population) … with economic growth of 3.3% for 2016-17.
That compares to 2.9% for NSW, 2.7% for WA, 2.2% for SA and 1.9% for Qld … for the same period.
This growth has resulted in strong business expansion; and will help underpin the Melbourne office market going forward.
The other growth sector is what the US call Multifamily dwellings (or the building-to-rent sector) … as housing prices have created a stable demand for rental accommodation – attracting both local and overseas investors.