How the Australia Real Estate Market is Positioned?
The Real Estate Market In Australia is currently at its growth stage. The real estate market has been categorized into four sub-categories which include residential real estate, office real estate, retail real estate and hospitality real estate. The country witnessed a declining mortgage interest rate in the real estate market owing to which the demand for the real estate has increased over the years. The country witnessed a growing demand in the office, hospitality and retail real estate sector owing to favorable demographics of the country and the increase in the number of tourist over the years. Since, the real estate market is witnessing a growth in Australia; it has simultaneously contributed to the growth of other industries such as facility management. The real estate market of Australia was growing at a rapid pace since the year 2017. The prices of residential dwellings were breaking all-time high records in 2017 resulting in the affordability issues for the buyers. Also, owing to the favorable payment scheme introduced for the first time buyers, in order to prevent the market from any downfall and help in contributing to growth.
Introduction of negative gearing scheme, introduction of the depreciation tax scheme and the massive inflow of Chinese investors in the real estate sector has been complimenting the size of this industry. Properties in Sydney and Melbourne account for ~% of the total number of properties in Australia, and ~% in terms of value. At the same time, Brisbane is the third biggest city and a highly popular choice among many property buyers. Sydney, Melbourne and Brisbane were the most preferred cities for investment for national and international investors in the year 2017 and 2018 because of their large influence in the Australian economy.
How is the Australia Retail Real Estate Market Positioned?
Australia retail real estate industry was observed to grow in past five years recording a CAGR of ~% in terms of revenues during the review period 2013-2018 owing to the rising urban density, declining vehicle use, online retailing and the increasing popularity of prepared or semi prepared meals. The market is growing in Australia owing to the favorable demographics of the country, rise in population with a strong growth trajectory in tourism, and increase in the per capita income. The retail supply per capita was approximately ~ square meters in 2018 and is projected to be ~ square meters in 2019, and it averages just ~ square meters per annum. The change and development in the retail industry in Australia is driving greater demand for the retail real estate. The country witnessed increased opportunities for the investors to acquire major retail assets, which historically was not accessible in the country.
What Are The Factors Inflecting Retail Real Estate Sector In Australia?
Population of Australia: The rise in population with a strong growth trajectory in tourism and per capita income are the major reasons for the upward growth of the retail sector in all the states.
Growing Investment Market: Growing retail industry in the country has increased the investments market.
Income and wages of Australian’s: The change in the income and wages of the Australian population has contributed in the growth of the retail real estate industry in the country.
Changing trends in the food and beverages sector: The Australian lifestyle is shifting from the big weekly food shop towards daily food purchases and increased consumption of prepared meals.
Retail Spending: Australian retail sales moving annual turnover grew by about ~% over the year 2018. The increased spending on the retail sector has also been as contributor of growth in the real estate market in Australia.
Current and Future Retail Demand and Supply
The investor demand for Australian retail assets has remained strong with demand rising from a diversity of buyers such as offshore investors, private syndicates, local institutions and listed groups. The total investment value amounted to AUD ~ billion over the first three quarters of 2018 which was equivalent to the figure in year 2017. Institutional investors have been the most active purchasers in the year 2018 accounting for over ~% of total transaction value which is AUD ~ billion. The increase in retail real estate demand was showcased due to various factors including personal disposable income, infrastructure development, ease in government regulations and increase in number of tourists as well as leisure activities of people. High growth in discretionary spending along with growing young population is the key demand generators in retail sector. Australia experienced a slow growth in the supply of new retail projects when compared with the retail stock and change in the population. Retail supply per capita was approximately ~ square meters in 2018 and is projected to rise in the coming years. The bulk of this supply will include neighborhood retail centers and large format retail. Population growth in the east coast markets will be driving the growth in the neighborhood shopping centers in urban areas. For the investor, stable economic growth, low interest rates and relatively attractive yields when compared to many overseas markets should continue to drive strong demand.
Regional Landscape Of Australian Retail Real Estate Market
New South Wales (Sydney): The retail sector of Sydney experienced a rise in the tenant activity with the strong performance of luxury and lifestyle retailers. Rise in the inbound tourism, particularly from Asia, remained the primary driver of growth for luxury retail property sales in Sydney.
Victoria (Melbourne): The retail sector of Melbourne had gross face rents at around AUD ~ per square meters in the year 2018. Buying and leasing activity moved towards the north and west ends of the city.
Queensland (Brisbane and Gold Coast): The region witnessed a recovery in its economy and migration and tourism were the major variables that impacted the retail real estate demand. The economic recovery in Queensland was mainly due to strong interstate migration and improving tourism arrivals.
South Australia (Adelaide): Retail sales in South Australia had rebounded and experienced growth which was above the national average in the year 2018.
Western Australia (Perth): Improvements for the investors in regards of the trading conditions are expected to grow in the coming years due to the anticipated rise in the occupancy rate of the retail assets of Perth.
Key Segments Covered:-
Australia Retail Real Estate Market
By Type:
Regional
Sub-Regional
Neighborhood
CBD
Large Format Retail
Others (Small Retail Stores and Independent Stores)
By Geography:
New South Wales
Victoria
Queensland
Western Australia
South Australia
Northern Australia
Tasmania
Australian Capital Region
Australia Hotel Real Estate Market
By Type:
3 Star Hotels
4 Star Hotels
5 Star Hotels
Others (Less than 3 Star Hotels)
By Geography:
New South Wales
Victoria
Queensland
Western Australia
South Australia
Northern Australia
Tasmania
Australian Capital Region
Australia Office Real Estate Market
By Type:
Grade A Office
Grade B Office
Premium Office
By Geography:
New South Wales
Victoria
Queensland
Western Australia
South Australia
Northern Australia
Tasmania
Australian Capital Region
Australia Residential Real Estate Market
By Type:
Apartments
Villas
By Geography:
New South Wales
Victoria
Queensland
Western Australia
South Australia
Northern Australia
Tasmania
Australian Capital Region
Key Target Audience:-
Real Estate Developers
Independent Investors
Real Estate Consulting Companies
Third Party Real Estate Companies
Independent Architects
Government Associations and Agencies
Time Period Captured in the Report:-
Historical Period – 2013-2018
Forecast Period – 2019-2023
Companies Covered:-
Metricon Homes Pty Ltd
Dyldam Developments pty limited
Burbank Group
GJ Gardner Homes
Multiplex Group
ABN Group
MJH Group
Stockland Corporation Limited
Frasers Property Australia Pty Ltd
Henley Properties, Australia
Lendlease group, Australia
Probuild Constructions (Australia) Pty Ltd
CPB Contractors
John Holland, Australia
Key Topics Covered in the Report:-
Australia Real Estate Market
Australia Real Estate Market Major Players
Canberra Real Estate Market
Queensland Real Estate Market
Tasmania Real Estate Market
Queensland Retail Real Estate Market
Number of Migrants in Australia
Property Buying Process in Australia
Australia Real Estate Broker Fees
Australia Residential Property Types
Australia CBD Real Estate Market
Australia Real Estate Floor Space
Types of Hotels Australia
Sydney Real Estate Market Size
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