Amar Jassal

The first mover advantage: Have commercial real estate valuations bottomed out yet? And if so, are they fairly priced? For the first time in over five years, Australian commercial real estate valuations across office, industrial and retail are looking fairly priced. In assessing real estate asset valuations, a straightforward method involves comparing the yield spread to the long-term risk-free rate. Over the past decade, Australian government bonds have yielded an average of 255 basis points. Notably, between 2017-2022, spreads in the office, retail, and industrial sectors were minimal as they hit historic lows. However, post-2022, with valuations correcting and bond yields rising, the spread has outpaced the expansion in bond yields. Consequently, real estate valuations are now appearing more fairly priced for the first time since 2019. Understanding fair value is crucial for pinpointing optimal acquisition timing in real estate cycles and enhancing portfolio structures. With the potential for rate cuts in 2025, it's expected that bond yields will decrease, leading to a wider yield-to-bond spread in the short term. This shift is likely to make Australian real estate pricing significantly more appealing to opportunistic investors and result in a strong pickup in equity investment in 2025-2026. #privatecapital #commercialrealestate #economics #property

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March 2024 Real Estate Market Insights 🏡⁠ ⁠ The latest data for March 2024 from the Real Estate Institute of New Zealand (REINZ) signals a dynamic real estate landscape, marked by a surge in listings and stock levels, offering buyers a wider array of options.⁠ ⁠ REINZ's Chief Executive, Jen Baird, highlights the uptick in market activity compared to the previous year, underscored by heightened listing numbers, expanded stock levels, increased sales counts, and higher median sale prices. Baird comments, “This is the second consecutive month recording a year-on-year increase in the median sale price nationally. This, along with the increased year-on-year levels of sales and listings, suggests that we are past the lowest point of this market cycle.”⁠ ⁠ Baird acknowledges the prevailing economic environment characterised by higher interest rates and some job market uncertainty, noting that while some buyers remain cautious, a growing number are seizing the opportunity to enter the market including First Home Buyers.⁠ ⁠ The surge in listings has translated into increased sales activity in our local suburbs, further fueling market dynamics. As more buyers actively engage with the market, it's imperative for both buyers and sellers to remain informed and proactive in navigating this evolving landscape.⁠ ⁠ Contact us for more information! 🔗 Link in Bio.⁠ ⁠ Source: The Real Estate Institute of New Zealand (REINZ) ⁠ #HarcourtsNZ #realestate #propertymarket #aucklandcity #housingmarket

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Don’t be anchored by the 'dinosaur seven', growth is in Ex 20 - Watch Yarra Capital Management's Dion Hershan on Portfolio Construction Forum and earn 0.50 CE/CPD hrs https://lnkd.in/gABNS8yV #PortfolioForum #Markets #AustralianEquities #AustralianShares #ASX200 #ASX20 #ASXEx20 #Dinosaur7

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Don’t be anchored by the 'dinosaur seven', growth is in Ex 20 - Watch Yarra Capital Management's Dion Hershan on Portfolio Construction Forum and earn 0.50 CE/CPD hrs https://lnkd.in/gABNS8yV #PortfolioForum #Markets #AustralianEquities #AustralianShares #ASX200 #ASX20 #ASXEx20 #Dinosaur7

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Understanding the property cycle can be very useful for commercial real estate investors to help them decide on their next move – be it to buy, build or sell. See page 26 in today’s The Australian Financial Review #australianfinancialreview #afr #urbanpropertyaustralia #upa #smartinvestor #commercialrealestate #investors #propertycycles

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