Commercial property market rising with foreign investment and superannuation funding: First National

Stephen TaylorJuly 8, 20130 min read

A key trend in the commercial property market this year will be the rise of the foreign investor, according to First National Real Estate’s Mid Year Outlook.

“Foreign investment in Australia’s property market has continued to increase on the back of the country’s stable economy and high yielding assets, with Asian buyers leading the charge,” CEO Ray Ellis says.

Another trend is the rise in the number of people buying property through their superannuation funds, which 76% of members tip will increase in the coming six months.

Ray Ellis says 2013 has been hailed as ‘the year of the property investor’ with interest rates now below rental yields in many areas and attracting investment.

“According to our members, the rental market in Australia will continue to be relatively tight, with little room for movement,” he says.

“Ongoing strong demand will tighten the market even further, with vacancy rates stretched to their limits in many areas.

“This will continue to place upward pressure on weekly rental prices.  However, given the strong affordability of housing at the moment, there is not much more the market can bear in terms of weekly rental prices.”

Queensland and Western Australia lead the anticipated weekly rental price increases, followed by New South Wales, Victoria and then South Australia.

Stephen Taylor

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