Commercial Property Market offers a high degree and performs a whole lot better than a residential typically does. Australian commercial property markets are known to providing favourable returns to investors. Brisbane, Melbourne and Sydney economy are significantly affects commercial property which means when the economy is strong, the demands tends to be stronger with low vacancies.
According to reports, the volume of investment towards industrial property in the year 2014 has reached about $6 billion which was the highest ever recorded. In early 2015, Melbourne’s industrial real estate has the best annual return which has increased to 7.6 percent.
Higher levels of supply in Melbourne are showing positive signs for tenants with increasing incentives which is a sign of strong investor demands.
Melbourne’s retail property returned 10.7 percent which is the highest return since 2011. In 2014, retailers had their biggest year particularly for food, goods and specialty retail. Retail property owners are in solid position as price and spending increased which would also increase the occupancy rate. As a result of this increase, occupancy demands for more retail spaces are expected to rise up as well.
There is a significant property price growth all over Australia and Melbourne was recorded that have reached 9 percent. It has been forecasted that by the year 2017, the growth of residential market across all major cities is likely to be subdued.