The Property Council/ IPD Australian Commercial Property Index to June 2012 shows a total return of 10.0 percent, comprised of a 7.5 percent income return and 2.4 percent capital growth.
This result is slightly below the previous quarter, which recorded a total return of 10.1 percent, and the long term average of 10.1 percent.
By sector, the office market recorded annual total returns of 10.5 percent. Over the year to June 2012 the office sector was the only market to increase in total returns, by 0.4 percent.
Retail saw a decline of 1.5 percent and its annual total return was 9.1 percent.
Industrial sector returns declined by 0.2 percent to post an annual total return of 9.7 percent.
Hotels, despite a decline of 3.1 percent, saw an annual total return of 13.5 percent.
As of June 2012, income return premiums across UWPFs, URPFs and AREITs are 3.1, 5 and 4 percent respectively.
Anthony De Francesco, IPD Australia and New Zealand managing director, says the flow of capital into the unlisted property sector reflects investors’ preference for property exposure absent of equity market volatility.