.Australia's Commercial Properties Recover Faster Than Expected...

.Australia's Commercial Properties Recover Faster Than Expected on Economy
By Nichola Saminather - Oct 28, 2010 7:12 PM .Australias commercial property market is recovering sooner than expected, driven by a strong economy and the biggest mining boom in more than a century, Jones Lang LaSalle Inc. said.

The demand for office space has exceeded expectations for this stage of the recovery phase, Australia Chief Executive Officer Stephen Conry said in an emailed release. We will soon be seeing pressure on rents, enhanced values, and more developers becoming increasingly confident and active.

The nations economic strength, jobs growth and rising business confidence will drive rental growth over the next year, Conry said, as vacancies peak at a low 8.3 percent. That will fuel an increase in the volume of sales in 2011, he said.

Most Australian real estate trusts reported a return to profit in the 2010 financial year as they exited overseas investments and raised capital following a period of surging debt and plunging property values. Australias biggest mining and energy boom since the 19th century will drive faster-than- anticipated growth in the Perth and Brisbane markets, Conry said.

Rising retail sales and consumer confidence will support retail rents as yields stabilize, LaSalle said. Yields are also falling in some industrial markets as demand for warehousing space and rental growth emerge, the group said.