Dr Gelber is still very bullish on AUST commercial propertya...

Dr Gelber is still very bullish on AUST commercial property

a rising tide floats all boats, so vpg's domestic business will also benefit from this potential outcome

please read the following from the SMH


Interest rates are set to rise and commercial property values will skyrocket, a leading economist says.


BIS Shrapnel chief economist Dr Frank Gelber says future growth in Australia means interest rates will increase.

"Over the next five years we're looking at growth of around 3.5 per cent," he said in Brisbane.

"Interest rates have further to go."

It's not what the Reserve Bank does month to month, but what it does seasonally that matters, he says.

"This season is going to be a season of very strong rises in interest rates that will last a long time," he said.

Despite a rise in rates, Dr Gelber says the pick of investments will be in the commercial property market.

"I've never seen a lower risk, higher prospective return, in the commercial property market, ever," he said.

"We're looking at rents and property values doubling in Sydney and Melbourne over the next five years."

Brisbane was also seeing a recovery in the property market with further rent adjustments to come, he said.

more info from
http://www.smh.com.au/business/rates-set-to-rise--but-not-just-yet-bis-20100907-14yp1.html