Australian commercial property markets highlighted as 'resilient'
With many commercial property professionals keeping a close eye on the financial situation in ...
With many commercial property professionals keeping a close eye on the financial situation in Europe, it may be of comforting to know that Australian markets have been identified as some of the most stable in the Asia-Pacific region.
A report from DTZ's Foresight division has shown that - while local markets are not likely to be immune - any recession-istic effects caused by the debt crisis will have a limited effect on factors such as rental rates and GDP.
Researchers analysed the connections between markets and noted that main drivers of each country's economy in an attempt to determine how strong the knock-on effects could be.
The report notes that - while GDP would slip in a majority of countries in response to a Euro-credit-crunch - Australia showed "the most resilience" in the scenario, with growth only slowing by 0.2 percentage points between 2012 and 2016.
In particular the research highlights the commercial property market as being able to ride the wave of uncertainty, with most major cities only projected to experience "small downgrades" in the area of one per cent.
The paper's authors find this scenario to be in line with other predictive models, stating: "This reflects the fact that the impact of the scenario on the Australian economic outlook is minimal."