Property Sector Insights – June 2012

NAB’s Sector Insight reports utilise our expertise across a range of industry sectors to explore current issues, present forward looking […]

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NAB’s Sector Insight reports utilise our expertise across a range of industry sectors to explore current issues, present forward looking views and opportunities for growth and progression. Our reports also include some perspectives from respected industry leaders in each edition.

Welcome to the June 2012 edition of Property Insights.

It’s hard to believe it is 12 months since our first Property Insights publication.

It’s pleasing to report that despite mixed messages in the local economy and global uncertainty, the local property sector has continued to strengthen.

Our 2012 publication covers topical issues for both the property and banking sector. We are pleased to provide you with our Chief Economist’s thoughts on the economy and outlook for the property market. We are very fortunate to have Nick Collishaw from Mirvac, David Gippel from Cromwell Property Group and Brendan Gore from Peet provide their insights on a variety of topical subjects for their respective sectors, such as challenges, opportunities, sustainability and brand management, to name but a few of the topics they touch on.

With the market volatility offshore, funding and risk management are front of mind for a number of CFOs and Treasurers. We have included articles addressing Basel 3 and the implications for the sector and importance of funding diversification, interest rate risk management, issues in the bank debt market and capital market products now available for property.

Against a backdrop of changes in regulatory and funding environments – which have significantly impacted the supply and cost of capital – property borrowers face a substantially different market at a time when the refinancing task is significant. Our funding specialists focus on which markets are most accessible, with a particular emphasis on appetite for Australian assets.

Locally the outlook for the property sector continues to be positive, with Perth and Brisbane the beneficiaries of the resources boom and supply constraints assisting most markets.

Uncertain global economic conditions and ongoing consumer reticence continue to weigh on retail market confidence, but a structural shortage of housing remains and commencements are still weak.

With interest rates falling and the unemployment rate still comparatively low, house price growth should not drop drastically.

Download the full report to find out more.