This article is from the Australian Property Journal archive
This latest episode of Australian Property Journal’s Talking Property is brought to you by Real Capital Analytics (MSCI).
Our guest Benjamin Martin-Henry, Head of Real Estate Research, Pacific with Real Capital Analytics (MSCI), returns to APJ’s Talking Property, and chats to Nelson Yap about the Australian Capital Markets.
- Transaction volumes have declined.
- How are the different sectors performing.
- Alternative real estate outperformed the core sector.
- Have commercial property, particularly industrial property values peaked?
- Yields are expanding.
- Bond rates and industrial yields spread have narrowed significantly from 300 basis points to 25 bps, will we see a repricing of assets?
- Construction trends.
- Rising interest rates putting pressure on the balance sheet of REITs, stretching their LVR, will REITs continue to sell down assets?
- Rising US dollar presenting value for US investors.
- What can we expect for the remainder of 2022? How will the market finish? Q4 normally makes up between 30-40% of all transaction volumes in any given year, but so far Q4 2022 is on track to be one of the quietest period with just over $2.5 billion worth of commercial transactions reported, in contrast to a bumper Q3 2021 with over $30 billion.
