NAI Global have recently released the 2011 mid-year Market Report which reveals that, in a year where we have witnessed some of the largest natural disasters ever recorded, the Asia Pacific region continues to lead the world in terms of economic growth, investment and employment.

In the first quarter of 2011 we witnessed the Great East Japan Earthquake, the Christchurch Earthquake and Queensland Floods. Whilst much of our region has demonstrated strong growth throughout the first half of the year, both New Zealand and Australia have been affected by these natural disasters limiting commercial growth in both countries.

Chris Nicholl, Chief Executive Officer of NAI Harcourts, states that, “Many of the office markets across New Zealand and Australia have witnessed subdued demand as growth remains patchy across many industries. There is also anecdotal evidence of a ‘wait and see’ attitude with many companies deliberately being cautious as they consider expansion”.

“Corporate expansion is occurring in some Australian cities specifically because of expansion in the resources sector and related services and this is likely to continue for the foreseeable future. This is particularly true in Perth and Brisbane where demand has been more significant. Sydney and Melbourne markets are also witnessing reasonable demand,” Mr Nicholl said.

According to the report, the retail markets have been weaker in Australia than in Asia as consumer spending has been subdued due to the weaker economic conditions. Whilst there has been a threat of higher interest rates in the second half of the year, this seems to have now subsided but retail spending remains muted in many cities. New Zealand should see stronger retail sales on the back of the Rugby World Cup taking place.

“The report demonstrates that industrial markets across Australasia remain stable and whilst there is little growth in rental levels in most markets, there is little new speculative supply coming on stream with any new building generally being pre-committed. It is expected the industrial sector to remain stable across Australia and New Zealand for the balance of 2011.

“The investment markets have been active across the region and with many funds from Europe focussing on Asia Pacific along with all the local funds this is understandable. Yields are under pressure in the all the major markets including Sydney, Singapore and Hong Kong,” Mr Nicholl continued.

To access the full NAI Global 2011 Mid-Year Market Report, please visit www.naiharcourts.com.au.