Positive outlook for commercial property
Australian commercial property assets are expected to remain attractive to investors despite "soft market fundamentals", new research reveals.
The December quarter ANZ/Property Council Survey reported that the commercial property market sentiments had increased, despite high tenant incentives and elevated vacancy rates across the country.
The survey reported that "solid foreign and domestic investor demand" was driving downward pressure on cap rates despite the soft market fundamentals.
"While the likelihood of higher interest rates will challenge investor appetite for commercial property going forward, solid global capital flows, a heightened appetite for yield and strong foreign demand for Australian assets are likely to support investor interest in Australian commercial property for some time yet," the survey's authors said.
AUTHOR
Nicholas O'Donoghue
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
