Property and capital markets

W1 Characteristics of property

Important part of society, providing shelter and a place for an economy to operate

Key part of economic activity and the Government understands the importance of the property and construction industry to employment and economic growth

Key investment asset class that competes with other asset classes on performance and for funding

W1 Property sectors

Residential property sector (houses, apartments)

Core property sector - broadly related to employment (office, retail, industrial)

Non-core property sector (community facilities, entertainment facilities, hotels, sport facilities)

W1 Office properties (as part of the core property sector)

Traditionally located in CBDs near public infrastructure

Office vacancy in Melbourne has increased since 1990 above the Aus average due to:

• increased supply causing rent negotiations

• increased working from home

• government policies such as n rules about coming back to work

• economic conditions such as less spending causing less drive to work including within the CBD

W1 Retail property (as part of the core property sector)

Shopping centres with strong catchment areas and public infrastructure and can be:

• regional

• local neighbourhood

• factory outlet

• homemaker centre

Online retail has increased over time

W1 Industrial property (as part of the core property sector)

Manufacturing, warehousing and hi-tech supported by good transport infrastructure traditionally at the edges of cities

(commonly developed for a specific occupier)

W1 Property types based on location ??

Primary

• Retail

  Shopping centres

  High street

• Office – usually CBD

• Industrial

Secondary

• St Kilda in Melbourne

• Adelaide

 

Tertiary

• Sunshine in Melbourne

• Hobart

 

Non-core / alternatives

• Retirement homes, student accommodation, prisons etc.

W1 Property stakeholder participants

Central and local governments, standards authorities (building regulations), licensing authorities, industry and professional associations

W1 Types of property participants

Occupier participants - space users, corporate real estate practices

Property owner participants - private individuals, firms, governments, syndicators and financial institutions

Property developer participants - property owners, developers, builders and financier

W1 Technical support infrastructure participants

central and local governments, property owners, consultants, industry and professional associations