Commercial property to outperform equities
Australia's commercial property market is set to provide investors with greater returns than equities over the next two years, a survey reveals.
Data from the Australian Property Institute's (API) 34th Property Directions Survey, found almost two-thirds of property investors believed commercial assets would outperform the equities market over the next 24 months.
However, API NSW division senior vice president, Ian Muir, reported that the majority of those surveyed felt the commercial property and equities markets would perform at a similar level in three years' time.
"The survey indicates a strong outlook for the next two years for commercial, industrial and retail property markets in Sydney, Melbourne and Brisbane," he said.
"Currently, industrial property markets in all three cities are on the upswing of the property cycle, with Sydney the most advanced. In 2016, it's expected that the Sydney and Brisbane markets will remain at the same stage of the upswing, while Melbourne will advance.
"By 2017, Melbourne's industrial property market is expected to have advanced quickly to the top of the property cycle, while Brisbane and Sydney will have moved further along the upswing."
The survey also found a "large majority" believed there will be moderate to strong investment growth for Australian listed and unlisted property trusts over the next 12 months.
AUTHOR
Nicholas O'Donoghue
Recommended for you
The Federal Court has dismissed a conflicted remuneration case brought by ASIC against the director of life insurance distributor Freedom Group, where Bali holidays and Vespa purchases were among sales incentives.
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
