Research

On balance, last year was a positive one for real estate investors. The risks and rewards became clearer as central banks responded to sluggish growth and improving capital values benefited from low interest rates. We also saw risks on the demand side rising as consumer and business confidence hit record lows. With this in mind, where next for the new year?

More office skyscrapers are tipped to change hands this year after sales smashed through the $20bn barrier in 2019, according to a major report by real estate agency JLL.

The shopping centre industry has been rocked by the collapse of a series of retail chains and the poor start to the year, with consumer confidence hampered by bushfires and the new coronavirus.

Cheap finance, a strong leasing market, and global instability made Australian commercial property attractive for investors in 2019.

The international spread of the coronavirus is the latest challenge to hit the ailing mall sector, ­already dealing with a series of retail chain collapses, an extended drought and the impact of bushfires along the eastern seaboard.

Subdued business conditions and a lift in new developments have prompted a drop in space being taken up in office towers in the heart of Sydney but demand in the country’s resources capitals is holding up.

The contest for excellent staff is driving building upgrades across the business districts, with major developers using the lure of ultra-modern offices to win over the next generation of workers.

Increased focus on sustainability has led to Sydney and Melbourne falling in their rankings as globally attractive cities for real estate investment.

‘Mini Melbournes’ in outer suburbs, more climate-friendly development, and residential blocks above shopping centres have been forecast for 2020 and beyond. Mike Day, co-founder and director of RobertsDay, the urban planning and design consultancy behind …