subscribe to our newsletter
Falling dollar to drive commercial property

Falling dollar to drive commercial property

The lower Australian dollar is set to provide a positive boost to commercial property returns over the next year, according to a new report by CBRE.

The Australian dollar now sits between 25 per cent and 30 per cent below its peak levels of early 2013, which is a reflection of lower commodity prices and expectations of narrowing interest rate and yield differentials between Australia and the rest of the world, the report said.

CBRE’s head of research in Australia, Stephen McNabb, said the lower Australian dollar would help support many property-occupier segments across the nation, with commercial property tending to perform well after periods of currency decline.

“We expect this to be the case through 2015, with a lower dollar offering stimulus to the economy, in the same fashion as lower interest rates,” Mr McNabb said.

The CBRE report highlighted that the office sector has the weakest correlation with the Australian dollar, while the retail sector has the strongest – especially for sectors that are aligned to discretionary spending.

“The industrial sector benefits through more traditional channels, particularly logistics, with a rise in export volumes and domestic demand supporting logistic's volumes,” the report said.

Falling dollar to drive commercial property
mortgagebusiness logo

Latest News

The removal of APRA’s “redundant” cap on investor lending is unlikely to prompt a rebound in investor credit growth amid continual sof...

The impending Consumer Data Right could iron some of the kinks out of the home loan application process, the chair of the ACCC has suggested...

A big four bank has announced that, by the end of this month, it will no longer offer self-managed super fund loans for new consumer or busi...

Promoted Stories

podcast

LATEST PODCAST: Wayne Byres on mortgages, trusted brands and broker remuneration

Do you expect access to credit to get harder this year?