Chapter 1
Capital Markets
Australia Real Estate Market Outlook 2021
5 Minute Read
After a tumultuous 2020 which saw comparatively low investment volumes, 2021 is expected to see a pick up in activity with investors indicating they will be both more acquisitive and increase their levels of disposals as well.
The large amount of uncertainty brought about by the COVID-19 pandemic caused investment activity to drop in 2020. However, sentiment has started to reverse and investors are returning to the market.Total investment volumes should rise in 2021, with investors indicating a willingness to both buy and sell more assets compared with last year. However, international border restrictions are likely to remain for the majority of the year, which will mean domestic investors will be the most active.
Capital allocations are expected to continue to shift towards the Industrial and Logistics sector in 2021. Further investment into alternatives, such as data centres, healthcare and cold storage will also be a key trend in 2021.
Finally, extremely accommodative global monetary policies, resulting in the lower cost of debt, should ensure that pricing for the other major asset classes will stabilise in 2021.
Contacts
Simon Rooney
Head of Retail Capital Markets, Pacific
Chris O'Brien
Executive Director, Industrial & Logistics, Capital Markets, APAC
Andrew McCasker
Managing Director, Debt & Structured Finance, Pacific
Tom Broderick
Head of Office & Capital Markets Research, Australia