THE PROPERTY DEVELOPMENT REVIEW
International Investor Interest
Bishop discusses the international interest in Australia’s industrial market, particularly from American investors and institutions based in Singapore. Stable government, transparent market, and high demand-supply balance make Australia an appealing prospect for global investors. American entities like Brookfield, Blackstone, and Cadillac Fairview, among others, are actively engaging in the Australian market, with a focus on cities like Sydney and Melbourne.
Market Dynamics and Investment Strategies
The discussion touches on various aspects, including pre-lease transactions, multi-level industrial development, and the impact of construction costs. Bishop explains the careful approach of developers due to rising construction prices, ensuring a balanced supply-demand scenario. Additionally, he anticipates a stabilisation in debt markets, leading to increased investment activity and yield compression in the coming years.
Local and International Players
Local players like Goodman, Dexus, Charter Hall, and Centuria are adapting their strategies amidst changing market conditions. While some are divesting non-core assets, others are strategically buying in markets like South Sydney. This shift in the market dynamics creates opportunities for private investors and family offices to enter the market, especially in smaller asset acquisitions.
Future Outlook and Resilience
In closing, Bishop highlights the sector’s resilience, predicting a continuous demand-supply imbalance, moderate rental growth, and the emergence of domestic super funds in the investment market. He anticipates a stabilising debt market and increased institutional interest, showcasing the sector’s robustness and potential.
October / November 2023 – 27
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