Rent expectations for office and residential markets

In the world of challenging economic times, capital value and rental expectations for offices were back down in all states. According to National Australia Bank (NAB), rental incentive are still seen as key feature of the office property leasing market in all states bar WA. Rental incentives are now identified as “significant” in all commercial property markets. NAB forecast, by September 2013, all commercial property sectors are expected to record positive rental growth. September 2011 was reported as the weaker condition in the market and industrial property was the only sector that reported strong condition. “Positive growth is set to resume   next year with expectations for capital values and rents over the next 1-2 years strongest in WA and Victoria, NAB said. There is a hope for the local retail sector; WA will lead the nations in terms of rental expectations.

In the residential sector, even though the property market moved back, many are eager to become reliant on public housing. However, according to Professor Gavin Wood, Director of the RMIT Research Centre of the Australia Housing and Urban Research Institute “Australia has a healthy private rental market. The relative ease to renting in Australia might also be a factor in the low mortgage default rates. People sell up before it gets to that point. In housing house prices, we may establishing an income-tested housing allowance that could go to struggling home owners as well as renters, and abolishing subsidies for first-home buyers.