Knowledge Hub

CBRE Research recently analysed the land and buildings held on balance sheets across 40 ASX200/NZX50 listed companies. What we discovered was that well over $AU24 billion of capital could be unlocked and reinvested into higher returning opportunities in the Materials, Healthcare, Telecommunications, Transport and Industrial sectors in Australia and New Zealand.

There is strong demand from listed and unlisted property funds for long-term leased properties. The ability to capitalise on improving market values, dispose of under-utilised assets and acquire capital to fund other business strategies are just some of the reasons why listed corporates are targeting owner-occupier sales. In the Pacific region alone, there has been a well-worn path of owner-occupier real with c.AU$11 billion already realised over the past five years.

With significant yield compression evident across all commercial asset types since 2015, particularly in the industrial property sector, the opportunity could be even higher than our initial AU$24 billion estimate as corporates in Australia and New Zealand revisit their property occupancy strategies to unlock value.

This article was originally published in https://www.cbre.com/

Australia’s residential pricing has reached record highs, with continued strong growth across almost all markets. The national median house price had risen 18.4% over the year to June with the national median unit price up 8.6%. There are signs, however, that price and lending growth is attracting the attention of regulators, with some forms of macro-prudential intervention looming. Initial curbs are likely to target highly leverage borrowers. APRA has already increased the minimum interest rate buffer ADI’s use in assessing loan serviceability from 2.5ppts to 3ppts above the actual loan rate, while Australia’s major banks have begun to take a more cautionary approach to some of their lending criteria.

This article was originally published in https://www.cbre.com/

• Compared to Q1 2021, investors are displaying a higher risk appetite amid the tight yield environment
• Asset enhancement, repositioning and taking on leasing risk are among the strategies utilised by investors to achieve higher returns
• Logistics assets remain keenly sought after while Grade A office in prime locations are attracting enquiries as investors look to capture flight-to-quality demand
• Further logistics cap rate compression has been observed. Cap rates for office and retail remain largely unchanged
• Investors are placing a strong emphasis on income-related factors such as tenant quality, rent roll stability and potential rental growth
• Amid uncertainty about the duration of the pandemic, the economic outlook is investors’ primary concern in 2022. Concerns over interest rate hikes and high inflation are limited

This article was originally published in https://www.cbre.com/

Sectoral performance in real estate is always under the microscope, but it has never been so acutely examined and reported as it has in the past 12 months. As COVID-19 first spread across the Asia Pacific region and then the globe, bringing with it a global recession, investors and occupiers alike sought not only to limit their exposures but also identify opportunities for growth.

Just as we have seen differing performance between commercial real estate sectors, so too have we seen differing performances within the retail sector. In this report, we focus on the upper echelons of retail – the (super) prime retail streets in cities across the region – as well as discuss other relevant aspects within the sector.

This article was originally published in https://www.cushmanwakefield.com/