Market Report, "Australia Real Estate Report Q1 2011", published

Dec. 17, 2010 - PRLog -- Although Australia's economy rode out the global financial crisis fairly well, 2009 and 2010 have been difficult years for most protagonists in the country's commercial real estate sector.

Our in-country sources in Sydney and Melbourne reported that rental rates for offices and retail property tracked sideways during 2009. By contrast, rental rates in these sub-sectors fell quite sharply in both Perth and Brisbane. However, across the country as a whole, industrial rates held up fairly well. Since the beginning of 2010 rental rates in the Sydney industrial sub-sector have slipped by over 10%. In general, though, rents have been stable - and are largely expected to remain so.

This lacklustre outcome reflects a generally low level of consumer confidence which, in turn, has had an impact on retail sales and business confidence. Since the global financial crisis, a key dynamic in the Australian economy - in spite of an overall performance that compares favourably with that of other developed countries - has been the deleveraging of the household sector. None of our sources expect that this will change any time soon. While Australian households look to increase savings and/or to pay down debt, the ability of commercial tenants to sustain higher rental rates will be limited. This is the reason why most rental rates appear set to rise by single-digit amounts over the next year or so.

Generally, supply of and demand for commercial real estate is in balance across the four cities and the three main sub-sectors. This points to discipline on the part of lenders and institutional investors in the years prior to 2008. However, it does not overcome the fundamental problem of the lack of consumer confidence.

Looking forward, we envisage that rental yields will generally move sideways over the next four years or so.

For more information or to purchase this report, go to:
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Report Table of Contents:

Executive Summary
SWOT Analysis
- Australia Real Estate/Construction SWOT
- Australia Economic SWOT
- Australia Business Environment SWOT
Regional Real Estate Overview
- Table: Asia Pacific's Office Markets At A Glance - Rents, 2009-2011 (US$ per square metre per month)
- Table: Asia Pacific's Retail Markets At A Glance - Rents, 2009-2011 (US$ per square metre per month)
- Table: Asia Pacific's Industrial Markets At A Glance - Rents, 2009-2011 (US$ per square metre per month)
Real Estate Market Overview
- Table: Australia Real Estate Markets - Rentals in mSq/month, 2008 And 2009 (AUD)
- Table: Australia Real Estate Markets - Net Yield, 2008 And 2009 (%)
- Table: Australia Real Estate Markets - Terms of Contract/Lease
- Table: Australia Real Estate Markets - Available Space (mSq) and Vacant Space (%)
Industry Forecast Scenario
- Table: Australia Real Estate Markets - Rentals in mSq/month, 2009-2011 (AUD)
- Australia Real Estate Markets - Forecast Net Yield (%)
- Australia's Construction Outlook
- Table: Australia - Construction And Infrastructure Industry Data, 2007-2015
- Construction and Infrastructure Forecast Scenario
- Macroeconomic Forecast
- Australia - Economic Activity, 2007-2015
Business Environment
- Real Estate/Construction Business Environment Ratings
- Table: Asia Real Estate/Construction Business Environment Ratings
- Australia's RECBER
- Project Finance Ratings: Outlook For Developed States
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: Overall Project Finance Rating
- Australia's Business Environment
- Table: BMI Business And Operational Risk Ratings
- Table: BMI Legal Framework Ratings
- Table: Annual FDI Inflows Into Asia, 2006-2008
- Table: Australia's Top Export Destinations, 2000-2008 (US$mn)
- Table: BMI Trade Ratings
Company Monitor
- Bilfinger Berger (now known as Valemus)
- Bovis Lend Lease (BLL)
- Brookfield Multiplex (BM)
- Laing O'Rourke
- Leighton Holdings
- Meriton Group
BMI Methodology
- How We Generate Our Industry Forecasts
- Construction Industry
- Bank Lending
- Real Estate/Construction Business Environment Rating
- Table: Weighting Of Indicators
- Project Finance Ratings Indicators
- Table: Design And Construction Phase
- Table: Commissioning And Operating Phase - Commercial Construction
- Table: Commissioning And Operating Phase - Energy And Utilities
- Table: Commissioning And Operating Phase - Transport
- Sources

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.