April 2006
Example Article: INTEREST RATES - STEADY AS SHE GOESInterest rates continue to remain at record low levels. With the recent release of surprisingly low CPI figures (2.5% for the Sydney December quarter) the outlook for the Reserve Bank to maintain interest rates at current low levels appears likely now that Inflationary pressures have eased. This forecast holds good for the commercial property market in 2006.
To date the commercial market has not followed the residential market, which has been subdued for some 2 years now. Indeed the commercial market has benefited as residential funds have been redirected. The commercial market has remained buoyant as a result of continuing low interest rate environment, sheer weight of investment funds and a severe lack of investment supply.
This last point could prove to be a
major factor of 2006. The
market has not previously
experienced such low levels of
stock. Anyone thinking of selling
should be encouraged by this
important influence. Premium
prices are still being paid for long
leased investments to quality
tenants. Potential sellers may wish
to utilise this basic law of supply
and demand to their advantage.
+ Download Full PDF Newsletter
+ Back to Newsletters
