Sydney House Prices
Commercial Property Tax depreciation quantity surveyor
There are a number of big decisions to be made when thinking about purchasing a commercial property. While many potential business owners put the majority of their focus on cost, you also have to consider things like tax depreciation, consumer confidence, and the area where your business is going to be located. The good news with the latter element is that the NAB Commercial Property Index is as high as it has been in 4 years, but there are only certain regions and sectors that are fueling that positive growth.
As far as regions go, NSW and Victoria are far and away the best states to develop a commercial property in at the moment. When it comes to confidence, CBD hotels and industrial development are the best. Office space remains weak, but there are signs that confidence in that sector is starting to head in the right direction. This is crucial information for anyone looking to start a new business, and is something that really has to be considered before blueprints are created and a quantity surveyor called in.
It would make sense that the CBD hotel sector improved, as the low AUD and tourist trade created a perfect storm for that particular category. Again, the sector was not strong across the board, with NSW and Victoria having a much more confident outlook than WA and other states. NSW and Victoria once again led the way in the weak but improving office market, while other regions struggled for a variety of reasons. For example, WA and Queensland fell short in office confidence, largely because of the slowdown in the mining industry.
While industrial markets are still doing well, they have taken a little bit of a step back. Confidence in the retail sector is very much on the rise across all regions, as consumers seem to be ready to start spending their hard earned money again. The one thing that all markets have in common is the expected capital growth, which is expected to remain very strong for the next couple of years. One area that is struggling a little is in the lease and rental markets, both of which are pretty soft right now.
What all of this means is that new developments are sure to start popping up all over the country. Developers are ready to get started immediately, with 58% of those surveyed saying that they would be willing to get their developments started in the next 6 months. All of this activity is sure to increase consumer confidence across the board, as there is nothing quite like a rash of new businesses to let people know that the economy is on the rise. That increase in consumer confidence will eventually spur on even more new developments, which means that quantity surveyors across Australia are sure to be, very, very busy in the coming months.