DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/wb26zq/australia_real_est) has announced the addition of the "Australia Real Estate Report Q3 2012" report to their offering.
The Australia Real Estate Report provides industry professionals and strategists, corporate analysts, real estate associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Australia's Real Estate industry.
The Australian commercial real estate market continues to be fairly balanced because, structurally, the industry functions in a way that restricts over-development. It operates in an economy that, despite weak consumer sentiment and structural changes, is performing reasonably well. The economy and sector are underpinned by resources and demand from China, a reducing threat of interest rate rises, low unemployment and a strong infrastructure sector. We caution, however, that our outlook for the economy in 2012 is bearish, and the country will be negatively affected by the expected slowdown in Chinese economic growth.
Some of the key opportunities in the real estate market include:
- There is a resources boom in Australia at present, built significantly but not entirely on exports to China. This is putting money into the economy and bolstering downstream industries.
- Following the global financial crisis most Australian REITs have deleveraged to a large degree and now have capacity, by way of undrawn facilities among other measures, to invest as opportunities arise.
- The Australian commercial real estate market continues to be fairly balanced because, structurally, the industry operates in a way that restricts over-development. Careful bank lending policies meant that when demand for space dropped off in 2008 and 2009 there was not suddenly a glut of vacant property.
- The natural disasters in Queensland at the beginning of 2011 are providing a significant lift in the level of work for the construction industry and businesses that supply the industry. Also, monetary policy will be kept accommodative in order to drive the post-disaster recovery efforts, although the effects of this will taper off as work is completed.
The Australian economy is in essentially sound shape. Some key risks to the current real estate market are:
- Weaker-than-expected growth in China would lead to weaker economic performance for Australia, given that Chinese demand is the largest driver for Australian exports, including coal and iron ore.
- Weakening investor sentiment could result in a subdued market during 2012.
- There is a widening gap between the flourishing resources sector and the rest of the economy.
- We are concerned about weak consumer sentiment in Australia.
Companies Mentioned
- Bovis Lend Lease (BLL)
- Brookfield Multiplex (BM)
- Laing O'Rourke
- Leighton Holdings
- Mirvac
- Stockland Group
For more information visit http://www.researchandmarkets.com/research/wb26zq/australia_real_est