Australian capital city office values will rise 3 percent over the next two years, a National Australia Bank Ltd. survey showed.
Office property values will gain 1.6 percent by December, the survey found. Retail property values will fall 0.5 percent by December and industrial real estate will remain flat, according to the report.
Australian business confidence rose to an eight-month high and consumer confidence climbed in January after the central bank cut interest rates twice late last year. The Reserve Bank of Australia unexpectedly kept interest rates unchanged this month, citing progress in Europe on addressing the region’s debt crisis and improving financial market sentiment.
NAB’s commercial property index, which measures capital value and rental pricing expectations in the real estate industry, was minus 6 in the three months to December, from minus 13 in the previous quarter.