INSIGHTS | Industrial Yield Expansion
Like many people, I was tuned into the recent webinar from MSCI on Australian Capital Trends Q3 2022. The data set is second to none, so in the Industrial space its almost mandatory watching to get an overall picture of what is happening in the market.
Of particular note was the first indication of Industrial yield expansion in the Sydney market. See the graph above. The rise is mirrored in Perth and the trend is clear for Melbourne and Brisbane to follow soon also. Yield expansion indicates a drop in values and could indicate a peak in the market as other asset classes have experienced this year. It is only a small movement, so the news is the direction as opposed to the quantity. Industrial real estate has been one of the best performing asset classes for the last 10 years and rents are rising quickly with inflation.??
Attribution of graph
MSCI RCA Australia Capital Trends Webinar Q3 2022 (November 2022)
David Green-Morgan | [email protected] | Global Head of Real Assets Research
Benjamin Martin-Henry | [email protected] | Head of Real Assets Research, Pacific