Invest
Investors eyeing new property markets
Strong rental returns and low interest rates are driving traditional residential investors to seek yield in the industrial property market, new data suggests.
Investors eyeing new property markets
Strong rental returns and low interest rates are driving traditional residential investors to seek yield in the industrial property market, new data suggests.
Sydney-based sales and asset management company Bawdens Industrial said the NSW capital can expect rental increases of between 35 and 45 per cent over the next three to five years due to an undersupply of industrial property.
Managing director Barry Cawthorn said the low interest rate environment and falling cost of money domestically is creating ideal conditions for investors.
"The owners of residential property and developers with land banks who have made strong returns in recent years are cashing in and now moving into industrial property to capitalise on higher returns," Mr Cawthorn said.
"We are witnessing a shift towards investors purchasing industrial property in their self-managed super funds to generate an income for life."
According to Mr Cawthorn, Sydney investors are discovering that a small industrial strata offers significant advantages compared to a residential investment.
"The security bond is usually bigger (three months), leases are longer – typically three to five years – less capital outlay is required for smaller units and rental yields are generally higher," he said.
Bawdens also noted that the most recent Property Council/IPD Australia All Property Index showed the average annual return of industrial property was 15 per cent in the 12 months to 31 March, while property shares saw a return of 9.2 per cent, bonds recorded a 1.6 per cent return and balanced share portfolios went backwards by 11.3 per cent.
The average rental income yield for industrial property was 6.6 per cent, plus 7.0 per cent capital growth, the best it has been since 2008.
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more
Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more
Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more
Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more
Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more
Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more
Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more
Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more
Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more
Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more
Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more
Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more
Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more
Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more
Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
