Commercial Property Market The 2013 commercial property market continues its trend of revival with commercial members reporting increased activity levels and record sales. Our member survey shows 60 per cent of our members believe the commercial property market will remain steady for the next six months, led by Queensland, NSW, South Australia and Western Australia. However, Victorian members believe the sector will strengthen in their state over the coming six months. Any weakness in the sector is seen as a result of reduced business sentiment especially for retail, and the downturn in the mining and resources sector. According to 71 per cent of our members, commercial property prices should remain relatively steady, fairly equally divided across all states. However, 60 per cent of members believe commercial rental prices will remain steady over the coming six months, with 15 per cent expecting them to trend upwards, led by Victoria. Our members anticipate the commercial property sector over the coming six months, will be driven by improving confidence, especially following the upcoming federal election, strengthening economies both locally and overseas and the growing trend for tenant incentives in the form of discounting. According to our survey, 58 per cent of our members are already seeing this trend occurring, and 68 per cent say they believe it will continue for the remainder of 2013.
20
First National Real Estate | 2013 Property Market Outlook Mid Year Update