Commercial Australian property remains healthy

Fears that commercial Australian property is headed for a slump have been dismissed by forecasters, although potential future points of concern were identified.

Retail and industrial property in the country were recognised as positive by John Talbot, head of capital markets at property and investment managers Jones Lang LaSalle, according to the Western Australian Business News.

“The retail and industrial markets are seeing record levels of new supply as demand eases from the consumer slowdown,” Mr Talbot told the paper.

However, Mr Talbot also identified potential risks in the market, such as a shortage of office space in around five years’ time.

On current forecasts, the supply-demand equation for Australian office markets indicates a slight shortage of stock nationally, making it primarily a landlord’s market.

Conditions in the commercial Australian property market are expected to remain robust for the time being, however, with 2006 predicted to be one of the strongest years on record.

A high number of new development proposals have been noted, particularly in the markets of Perth and Brisbane, owing to a boom in the office leasing market.

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