Data shows growth for industrial property in Australia

By Nick Syrimi

Nothing happens in a vacuum; every aspect of our lives is dependent on a number of factors. The property market is no different.

According to a recent report from IPD, Australia's commercial property market continued to feature a "flat-line profile" during March 2014. However, this flat-line profile still meant profits.

"As at March 2014, annual total return was 9.3 per cent comprised of a 7.1 per cent income return and 2.1 per cent capital return," the report stated.

And when Australia was compared to other nations, it was clear how the country's commercial real estate sector has stabilised returns for investors when compared to nations like the US, UK, Japan, Canada and New Zealand.

Still, Australia's commercial market itself is comprised of different sectors. Data shows that while the office sector has experienced declines in capital returns on an annual basis, retail saw a rise.

However, the clear standout was the industrial sector, which saw a year-on-year capital return increase from 9.6 per cent to 11.3 per cent.

If you're considering commercial investment, property in Pinelands in the Northern Territory might be just what you're after. And with industrial capital returns on the rise, you should have no problem deciding which sector to investigate.

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