It has been an exceptional year for the Australian real estate sector despite lingering uncertainty over Covid-19 as well as an emerging new variant, Omicron.
Owners and developers in the besieged office sector of Australia’s once buzzing central business districts are still accepting the implications of Covid-19 after the pandemic accelerated deployment and investment in digitally connected remote working means.
The retail sector is showing the first signs of a strong recovery in Sydney and Melbourne, particularly after an extended period of door-to-door orders as sales figures recently rebounded above pre-pandemic levels .
At the same time, the dynamics of the industrial property sector have shown no signs of slowing down after reaching record development levels and forcing a further contraction of premium yields on asset sales. Record occupancy of industrial space and low vacancy rates also caused industrial rents to skyrocket.
Healthcare asset sales volumes and prices are now at record highs, as investments by listed REITs have increased 12-fold in the past 18 months.
Student housing and tertiary service providers have continued to prepare new projects despite the lack of clarity from the federal government on when foreign students will be allowed to enter the country, while the country’s hospitality sector appears to have a long way to go.
To learn more about the past year, we asked some in the commercial real estate industry for their biggest lessons and lessons from a trying 2021.