Commercial real estate investment in Australia – a promising new direction
Investment in commercial real estate in Australia then rent or transfer is quite new but a promising new direction with the Vietnamese.
Investment trends in Australian real estate in recent years increased due to stable market growth and large demand from immigrants … leading to shortages of land and supply is not enough demand. Apart from housing, investors are now very interested in commercial real estate.
According to Colliers International director of research Nerida Conisbee, commercial real estate is a potential asset. Unlike residential real estate, commercial real estate is a very broad property. This property includes: offices, retail stores, factories, childcare centers, pubs, aged care facilities and hotels.
Mr Conisbee said Australia’s commercial real estate market has experienced a period of stagnation following the global financial crisis and is on the verge of development.
Investments in commercial real estate range from $ 1-3 million, much larger than investments in residential real estate, but commercial property is very profitable with rental income. At least 6.5% per year and can increase to over 8% per year.
In addition, while a commercial lease can last from 2 to 3 years or more, the homeowner’s contract usually lasts one year or less. Most commercial lease agreements also contain provisions on rent assessment, in which rents are adjusted to market rates. Most rental contracts may increase when taxed, but will not decrease.
Thus, the potential for investment in commercial real estate in Australia is enormous. Besides the huge profit from the rent, the growth rate of these properties is also very attractive. It is expected that in 2018 the growth rate of this type of real estate will double that of housing.