APJ’s “Talking Property” with Benjamin Martin Henry

APJ’s Talking Property with Benjamin Martin Henry

OUR guest Benjamin Martin-Henry, Head of Real Estate Research, Pacific, MSCI, returns to APJ’s Talking Property, and chats to Nelson Yap about the Australian Capital Markets.

• Transaction volumes hit the lowest level since 2011
• Sales of industrial, office and retail assets all slumped in the first half
• Momentum in the build-to-rent (BTR) continued to grow, the only sector to buck the trend
• Incentive levels pushing 50%
• Valuation and transaction yields spread have increased
• Valuers have already called the bottom of the industrial market
• Pricing gap expectations remains, sellers not pressured to sell and buyers want bigger discount
• The MSCI Price Expectations Gap model – which estimates the amount sellers would need to shift their price expectations to bring transaction activity back to “normal” levels of liquidity – are around 30% for Australia's largest sectors and markets, contributing to its status as one of the worst performing markets globally.
• REITs and institutions have shut up shop, private investors are dominating the investment market.

This episode of Australian Property Journal’s Talking Property is brought to you by MSCI.