Retail and hotel properties are deemed to be among the best investment asset classes in Australia right now, as investors search for higher yields.
An improving consumer sentiment is driving performance of retail assets, which in turn provide yields attractive enough to lure investors.
Buying commercial property in Australia seems to be a good prospect, since retail assets in Brisbane, Melbourne and Sydney among other cities are expected to perform well until 2018, according to the Property Directions Survey by the Australian Property Institute.
The timeframe might be too short to guarantee a lucrative investment, but judging from insights by the poll’s respondents that included property valuers and analysts, the level of risk associated with commercial properties compares favourably against other types of investments.
When dealing with property investments, the cliché “two heads are better than one” can certainly be a helpful concept. This simply means that you should consult with property investment firms or brokers to figure out which type of commercial property will bring the best value for your money.
If that still seems unconvincing, think about this: People will always need a place to buy food, clothes and other basic necessities. That’s only taking the current number of people into consideration, as the population continues to increase especially in urban areas.
Tourism in Australia is undoubtedly one of the main drivers of its economy, and with demand from local and international tourists comes the need to build properties to serve as their temporary residence. In Perth, 24 hotel projects with nearly 4,000 rooms worth more than A$3 billion are expected to open in and around the city over the next three years.
These investments are almost certain to be sustainable because tourism numbers are expected to grow continually over the next decade, providing enough supply to meet demand, according to Australian Hotels Association CEO Bradley Woods.