APJ’s “Talking Property” with Benjamin Martin Henry

Our guest Benjamin Martin Henry, Real Capital Analytics Head of Analytics – Pacific, returns to APJ’s Talking Property, and chats to Nelson Yap about the Australian Capital Markets.

• It isn’t just consumers who are revenge spending after lockdowns, investors have also flocked to the retail sector.
• Industrial and logistics remain the most sought after and transactions have outstripped the office sector in the first three quarters, could it be on track to beat offices in 2021?
• But the office sector is also roaring back, as investors who had been in hibernation, re-emerge as the lockdowns end.
• 2021 is the rise of the alternatives. Priced out of industrial by big players, private investors in the sub $30 million tier are turning to alternatives - pubs, medical offices, service stations, childcare, self-storage, just to name a few. The average price for alternatives was $9.1 million.
• Are alternatives the new “industrial”?
• There has been a big increase in deals in the $10-100 million and $100-$250 million tiers. This is largely due to retail, whereas last year there were basically none. What’s behind this trend?
• At the same time, deals in the $1-6 million tier which have been declining over the past five years, has seen a jump over 30% in 2021, what is driving this?
• Finally looking ahead in 2022 – post the lockdowns, international borders reopening in the new Covid-normal world, what can we expect for the Australian capital markets?