Investors looking for the best returns in Australia should take a look at the office markets in Perth and Melbourne, a new survey reveals. The first quarter NAB Commercial Property Survey predicts that these markets will both see rising capital values and rents over the next two years.
Perth Central Business District across the Swan River
The survey also reports an overall improvement of sentiment in the market in general and forecasts that this confidence will improve further throughout 2014 and 2015. Improvements in outlook were recorded across all sectors, though all but hotels currently remain in negative territory.
However, the brightest outlook is for the office sector, with Perth and Melbourne showing the greatest potential for growth.
Office values in Perth, largely in the central business district, are forecast to rise by around 3.5 per cent over the coming 12 months and by 5.6 per cent by March 2015. In addition rents are expected to rise by 9 per cent over the same period.
In the case of Melbourne values are expected to rise by 2.7 per cent over the next 12 months and by 4.2 per cent by 2015. At the same time rents are forecast to increase by 5 per cent.
The survey also points to strong gains in Sydney office values but, as opposed to Perth and Melbourne, a 1.4 per cent fall in rents is expected.
