According to Standard Life, Sydney and Melbourne are the best commercial real estate achievers in the Asia Pacific region for 2017.
A strong office market and increased demand for shopping malls and logistics is driving the performance. Perth retail offices are expected to perform poorly however.
Last month Standard Life talked about Australian commercial real estate as being ‘frothy’ much like our beer!
They claim the strong demand for Australian commercial real estate is being driven by a “global appetite for income” including continuous investment from China rather than any real local forces.
Although demand might have peaked in 2015 according to the British investment house, they still envisage strong opportunities for the coming years.
With technology now driving how and where we work with workplaces becoming more flexible, it will be interesting to see how this affects demand for commercial real estate in Australia and what types of work spaces become relevant.