Jonathan ChancellorDecember 7, 2020
Returns on commercial property in Melbourne and Sydney exceeded those in Brisbane, Perth, Adelaide and Canberra, according to the Property Council/IPD Australia All Property Index for the year to March 31.
The average total return was 10.7% – 6.9% in income and 3.5% in capital growth, the Australian Financial Review noted.
It was up from 10.4% in the year to December 2014, with an improvement in capital return due to ongoing compression in cap rates.
Industrial real estate had the best annual return, up to 12.4% with NSW having the highest 13.9% return with Queensland next with 11.7%.
Retail property showed the next best return, up 10.9%.
Office property returns were up 10.2%.
The Property Council/IPD Australia All Property Index was prepared by MSCI based on the performance of more than 1200 properties with a combined value of $137 billion.
