Dexus Research has released their Australian Real Estate Quarterly Review Q3 2017, with a focus on the healthy returns being experienced by unlisted commercial property.
According to the report, unlisted property returns improved in the June quarter, delivering 12.0% for the year, second to equities on the asset class league table.
In a relatively subdued economy, positive business confidence and firming jobs growth bodes well for occupier demand over the next 12 months in the office, industrial and retail sectors.
Jobs growth in Australia has firmed over the past six months, with Victoria by far the strongest of the States.
Dexus General Manager of Research Peter Studley said investors in office and industrial property have experienced strong investment returns: "On average Australian wholesale property funds returned 12.0% in the past financial year."Over the 2017 financial year, the office sector outperformed with 13.8%, followed by diversified funds (12.6%) and Retail (11.3%).