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Vol 11. No.134

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	86.88	-0.76
Cash Rate	4.50	Steady
90 Day Bill	4.85	-0.02
10 Year Bond	5.128	+0.028
ASX 200	4422.7	-19.9

NSW Property

• Conditions within the secondary office market are showing signs of improving mainly due to a lack in supply of A Grade and higher quality assets.
• Yields within Sydney CBD for secondary buildings tightened to 8.13% from 8.38% in the fourth quarter of 2009.
• Private investors and syndicates are currently the most active, seeing the high yields and potential value upside over time as attractive attributes.

Southern Sydney Commercial Office Update (SMH 17-18 Pg.16)

• Research has indicated the total investment value of transactions over $5 million reached $53.325 million for 2009-10 in the Southern Sydney commercial market.
• Yields within this region are averaging about 9% depending on quality of the building.
• The result was largely assisted by the sale of 221 – 227 Anzac Parade, Kensington which sold to a private investor for $35.5 million.

NATIONAL

• The House Building Index declined from 57.7 to 43.8 with apartment construction recording a slight rise from 42 to 44.
• Commercial building rose from 50.5 to 51.8 and engineering from 42.5 to 52.9.
• The ongoing impact of the government stimulus package is reflected in public sector work rising by 29% this quarter following the benchmark set during the March quarter of around $20 billion, primarily driven by public sector work rising by 30%. 
• In NSW, the value of newly begun private sector building work decline by 13% following a decline of 12% in the previous quarter.

• Sales of office towers, shopping centres, industrial facilities and hotels were reasonably restrained during the June Quarter. 
• $2 billion in major sales were recorded in the June quarter, a slight increase on the March quarter, however a lower than the June quarter 2009. 
• A number of reasons for the slow down have been cited, including the shortage of debt, debt concerns in Europe, uncertainty over Australians economic position and concern about the growth outlook for China. 
• No commercial office deals over $5 million were recorded in the CBD’s of Brisbane, Canberra or Perth in the June quarter. 
• Retail property sales increased for the quarter, particularly with private investors buying neighbourhood and sub regional centres.