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.
RELATED ARTICLES
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
Real estate investment: Spotting high-growth potentials
Investing in real estate has long been a favoured approach for Australians looking to grow their wealth. Read more
Property
Granny flats become Aussie families' cost-effective solution to soaring living costs
As the cost of living skyrockets, a forward-thinking trend is sweeping across Australia – granny flats are becoming a favoured living arrangement for older Aussies seeking comfort and proximity to ...Read more
Property
Homebuyers grapple with extended savings period amid affordability crisis
Gone are the days when an Australian dream home seemed just within reach. The path to homeownership in Australia has extended by at least two arduous years, as revealed by the latest insights from ...Read more
Property
Hybrid development unlocks new potential for NDIS housing in metro hotspots
In a ground-breaking strategy aimed at addressing the stark imbalance between the location of Specialist Disability Accommodation (SDA) developments and the actual areas of demand, Aligned Disability ...Read more
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
Real estate investment: Spotting high-growth potentials
Investing in real estate has long been a favoured approach for Australians looking to grow their wealth. Read more
Property
Granny flats become Aussie families' cost-effective solution to soaring living costs
As the cost of living skyrockets, a forward-thinking trend is sweeping across Australia – granny flats are becoming a favoured living arrangement for older Aussies seeking comfort and proximity to ...Read more
Property
Homebuyers grapple with extended savings period amid affordability crisis
Gone are the days when an Australian dream home seemed just within reach. The path to homeownership in Australia has extended by at least two arduous years, as revealed by the latest insights from ...Read more
Property
Hybrid development unlocks new potential for NDIS housing in metro hotspots
In a ground-breaking strategy aimed at addressing the stark imbalance between the location of Specialist Disability Accommodation (SDA) developments and the actual areas of demand, Aligned Disability ...Read more
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. Read more
