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The chief executive of one real estate agency says the federal budget handed down positive reinforcements for Australia’s business property market.
Gunning principal Malcolm Gunning applauded the budget outcome, released earlier this month, and said it was pleasing to see business property put under the spotlight.
“The banks have now loosened the lending criteria and are much more interested in lending on non-residential property,” he said.
Mr Gunning said the stimulus for business property will see more demand for rental accommodation, which will consequently drive rents higher.
“As a result of the budget, I foresee rising rents and increased demand from traditional investors into business property,” he said.
“This, combined with the move away from residential lending, sees us expecting strong growth in this market segment.”
Furthermore, Mr Gunning said the federal government’s decision to curb tax levels to 25 per cent for all businesses by 2026-27 will also help to build on the level of interest in business property.
“There is currently exceptional value for business property, which is drawing interest away from residential investors and into the commercial and industrial real estate market,” he added.
[Related: Industry body warns against foreign investor taxes]
ABOUT THE AUTHOR
Emma Ryan
Emma Ryan is the deputy head of editorial at Momentum Media.
Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.
Email Emma on: Emma.Ryan@momentummedia.
