Australia and New Zealand Property Journal – March 2014 Edition

Featuring market analysis and discussion, insightful feature reports, and valuable updates for the property industry.

The March 2014 edition of the Australia and New Zealand Property Journal is coming soon, and will feature market analysis and discussion from academics and industry figureheads, insightful feature reports, and valuable updates and research for the industry.

Keep an eye out for its release, with pieces including, but not limited to:

Australian commercial property investment market: Styles, performance and funding – part 2

This article, the second in a two-part series, examines the size of the Australian commercial investment property market, and compares investment performance with competing asset classes after adjusting for the reported low volatility from commercial property valuation based performance indices, and studies the impact of debt financing on commercial property fund performance.

Economic Appraisal

Economic Appraisal – What is it? Why should it be used? How should it be undertaken? And when are they a useful tool for planners and development practitioners? Cost benefit analysis and cost effectiveness are econometric tools that are increasingly being favoured as a development assessment tool in this area. With reference to a case study, author Sarah Hill of Hill PDA will examine the advantages and limitations of these tools and reveal any likely traps for users.

Savills World Cities Review: Residential Assets now top buys for investors

To understand the true appeal of residential as an asset class in major world cities, Savills has compared the fundamental demand for housing, as revealed by rental growth, against the rate of growth in capital values. This revealed that some capital value markets have risen substantially ahead of rental values – indicating the possibility of investor bubbles where demand for assets has driven values ahead of the income that might be produced by a property.

GDP and city population in the development performance of city structures

A city structure is defined as an evolutionary process determined by its network of functional activities; relationships; capital and knowledge flows which influence its growth and density as it transitions through a series of development stages. The purpose of this research paper is to present the major findings of GDP and city population key drivers in city structure development. The paper will also provide an evaluative framework and tools and suggests how it can be used to better inform stakeholders’ decisions and direct structural change on the development of cities.

What cloud computing can do for commercial real estate

Gartner reported that it expects the worldwide cloud services market to surpass $131 Billion for the year. This is 18.5% up from 2012 and 2012 was over 19% higher than 2011. The numbers prove that computing in the cloud is not just a passing fancy. This piece by Cougar Software will explore the growing trend of cloud computing, and how it can impact a commercial real estate environment.

RP Data 2014 Outlook opinion piece – Tim Lawless

Tim Lawless shares his summary of RP Data’s 2014 residential property outlook. By exploring market trends from 2013 in various State capitals, this opinion piece presents a breakdown of both capital city and national investment trends, including capital gains, rental yields and affordability, as well as lending rates and the effects of population growth.

CBD Hotel demand to drive office conversions

The tightly held ownership of Australian capital city hotels is the impetus for investors to examine the prospect of converting office buildings to hotel accommodation. According to the latest research from Colliers International, there is presently a window of opportunity for office conversion due to hotel values rising relative to B-grade and lower office space which is suffering from rising vacancy and escalating incentives.

Property Sector exposed to Climate Risk

This feature will explore what impact climate change has on the property sector, now and into the future. By speaking with various stakeholders and investigating different policies, perceptions and figures over time, we can reveal how the looming effects of climate change will alter construction, prices, liveability and the overall Australian economy.

Legal Notebook

DLA Piper provides insight into the implications that recent legal cases hold for property professions

Launching a fractional investment platform

DomaCom Limited explores a potential a solution to the investment markets need for access to direct and specific property exposure through relatively small transactions with an initial focus on the Self-Managed Super Fund (SMSF) market. In this paper, they propose this can be done by enabling investors to purchase “fractional interests” in specific properties of their choosing using a managed fund legal structure combined with an online platform which is much like a hybrid between E*Trade and Realestate.com.au.

The recovery of the retail sector

In this feature, we provide proof that digital shopping hasn’t taken over as the physical retail sector is experiencing a new boom. Following the redevelopment of many large-scale shopping centres and malls, we speak with some big retailers to discover how demand is changing the industry, as well as a number of key international brands looking to set up shops in Australia to boost their recovery following the GFC, including H&M, Marks & Spencers, Gap and Zara.

China’s ghost cities

It’s said that there are around 64 million empty apartments in China. This feature will explore how China has been investing in the building of multiple new cities at an estimated rate of up to 12 to 24 a year. But while they are full of brand new homes and facilities, nobody wants to live there. Reporter Tim Lohman will investigate why, and what affect these cities will have on the Chinese property sector and economy as a whole.