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The chief executive of a Sydney-based property group says the federal budget handed down positive reinforcements for Australia’s commercial property market.
Gunning principal Malcolm Gunning applauded the budget provisions, released earlier this month, and said it was pleasing to see business property put under the spotlight.
“The banks have now loosened the lending criteria and are much more interested in lending on non-residential property,” he said.
Mr Gunning said the stimulus for business property will see more demand for rental accommodation which will, consequently, drive rents to higher prices.
“As a result of the budget, I foresee rising rents and increased demand from traditional investors into business property,” he said.
“This combined with the move away from residential lending sees us expecting strong growth in this market segment.”
Furthermore, Mr Gunning said the federal government’s decision to curb tax levels to 25 per cent for all businesses by 2026-27 will also 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,” he added.
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