Property investors looking to enter the commercial property market will be favouring the office sector in 2007, according to Jones Lang LaSalle
The Jones Lang LaSalle’s annual survey of investor sentiment showed 80 per cent of those surveyed saying they plan to buy office assets over the next 12 months.
“Investors remain very confident about office property in the short and medium term, while in industrial markets, investors remain positive but less than a year ago. However, investors expect lower retail returns over both the short and longer terms,” said Lang LaSalle national head of research Kathryn Matthews.
The South Eastern metropolitan markets are the most strongly favoured investment markets, overtaking the 2006 preference for Perth and Brisbane assets.
“Melbourne and Sydney have moved to the top of the short-term performance table largely because of confidence that returns will not fall over the next six to 12 months,” Matthews said.
Overseas markets will also continue to be on the radar for Australian property investors.
“The Investor Sentiment Survey shows that 63 per cent of investors plan to increase their exposure to direct overseas property and 50 per cent to indirect overseas property in 2007,” Matthews said.
