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Belinda Luc
Conditions and expectations in the office sector improved over the September quarter as a result of solid rental returns, the latest research has found.
According to the NAB Commercial Property Index, confidence rose by 15 points, to sit at a healthier +5 points in the September quarter.
The office sector performed the best over the quarter, reaching +17 points in the Index, followed by the hotel sector.
NAB chief economist Alan Oster said the office sector is expected see value growth of around 3.1 per cent by September 2011.
Meanwhile, conditions in the retail and industrial markets remain lacklustre, recording growth expectations of only 0.9 per cent and 0.4 per cent respectively, according to the Index.
"The outlook for all property sectors is relatively positive, with respondents to our survey anticipating improvements over the next six to 12 months across the board," the report said.
"Overall, respondents expect the recovery in the commercial property market to gather significant momentum," it said.
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