Wed May 25

Federal budget win for business property

The business property market will be the beneficiary of the Federal Budget according to leading real estate agency, Gunning.

Gunning Principal Malcolm Gunning said the Turnbull budget released earlier this month puts business front and centre.

“The banks have now loosened the lending criteria and are much more interested in lending on non-residential and business property,” Mr Gunning said.

“As a result of the budget, I foresee rising rents and increased demand from traditional investors into business property.

“The stimulus for business will mean more demand for rental accommodation that will drive up rents. This combined with the move away from residential lending sees us expecting strong growth in this market segment,” Mr Gunning said.

“Ongoing tax cuts which will result in tax levels for all businesses falling to 25 per cent by 2026-27 will 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.

“I expect developers will start to move away from apartment construction into the undersupplied industrial and office sector,” Mr Gunning said.