Yields have compressed by 60 basis points.

Low yields versus high yields, it's all relative to the asset at hand.

As we know, lower yields are a significantly less risky investment, due to the long-term guarantee of a satisfied tenant. It’s also what’s dominating the commercial industry so far, partly due to the soaring prices of investments without the feasibility to bring the rent figure with it.

While rental growth continues to surge, Urban Property Australia anticipates that prime yields will remain at benchmark lows as keen investors seek stock for investment opportunities. Yields have compressed by 60 basis points, and up until June 2022, they’ve amounted to an average of sub-4%.

High yields have their advantages too, however, catering to an investor who accepts a higher degree of risk in return for a higher return. And in a market where occupiers (read: e-commerce businesses) are on the hunt for ideal spaces, this isn’t an uncommon game to play.

To hedge your bets better, call us to talk through yours. #CVAMelbourne