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
For more information on the research report,
refer to below link:-
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
