New Market Research Report: Australia Real Estate Report Q3 2010

2010-07-05 01:38:18 - New Business market report from Business Monitor International: "Australia Real Estate Report Q3 2010"

Although Australia's economy rode out the global financial crisis fairly well, 2009 was a difficult year 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 have tracked sideways over the last year or. By contrast, rental rates in these sub-sectors have fallen sharply in both Perth and Brisbane. However, as a whole, across the country, industrial rates have held up fairly well.

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. At 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.

Interviews with our in-country sources were conducted in late March 2010.

Key Features Of This Report

This is the latest edition of a new series of industry reports published by BMI that seeks to identify the key dynamics of the real estate sectors of 44 countries around the world, some of which are developed and some of which are, in every sense, emerging markets. Once again, the questions that we seek to answer for each country remain as follows: What are the main issues that will matter to actors in and around real estate development in the country concerned, both over the long and the short term? What are the main constraints that they face? What are the key insights that one garners when one compares the real estate sector of the country concerned with its peers in other countries?

For Q3 we have introduced a very substantial new improvement to the reports. We have incorporated data and qualitative observations provided to us by commercial real estate agents operating in the countries we survey. As a result we have gained a much clearer picture of the balance between demand and supply in each of three main sub-sectors - office, retail and industrial. We have also introduced a new approach to the forecasting of rental yields, which is discussed in the methodology sector of this report.

For more information or to purchase this report, go to:
- www.fastmr.com/prod/71519_australia_real_estate_report_q3_2010.a ..

Partial Table of Contents:

Executive Summary
- Key Insights on the Real Estate Sector of Australia
SWOT Analysis
- Australia Real Estate/Construction SWOT
- Australia Economic SWOT
- Australia Business Environment SWOT
Real Estate Investment Trusts
- Table: REIT Returns - FTSE EPRA/NAREIT Global Real Estate Index And Components, 2007-Q110 (% change)
Real Estate Market Overview
- Table: Australia Real Estate Markets - Rentals in m sq/month (AUD)
- Table: Australia Real Estate Markets -Net Yield (%)
- Table: Australia Real Estate Markets - Terms of Contract/Lease
- Table: Australia Real Estate Markets - Available Space (m sq) and Vacant Space (%)
Forecast Scenario
- Table: Australia Real Estate Markets -Rentals in m sq/month (AUD)
- Table: Australia Real Estate Markets - Forecast Net Yield (%)
- Australia's Construction Outlook
- Table: Australia's Construction And Infrastructure Industry Data And Forecasts, 2007-2014
- Macroeconomic Outlook
- Table: Australia - Economic Activity
Business Environment
- Real Estate/Construction Business Environment Ratings
- Table: Asia Real Estate/Construction Business Environment Ratings
- Australia's RECBER
- Asia Pacific Project Finance Ratings
- 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: Labour Force Quality
- Table: Annual FDI Inflows Into Asia, 2006-2008
- Table: BMI Trade Ratings
- Table: Top Export Destinations
Company Monitor
- Bovis Lend Lease (BLL)
- Brookfield Multiplex (BM)
- Bilfinger Berger
- 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
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Full Table of Contents is available at:
-- www.fastmr.com/catalog/product.aspx?productid=71519&dt=t

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