Categorized | International

Retail and Residential Real Estate Markets Struggle in Australia

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The United States is not the only country faced with a struggling real estate market. In Australia, the outlook for recovery in the retail and residential sectors looks very dim. Many investors and experts believe that the current struggles may last, at the very least, another year.

Over the last six months, both retail and residential property sales and values have declined. In comparison, commercial and industrial properties in the nation have seen slight increases during the same time period.

It has yet to be seen as to why commercial and industrial properties have continued to improve whereas residential and retail properties have lagged significantly behind. Some experts believe that there have been some key environmental issues impacting the overall costs involved in the retail sector. However, there is no clear indication as to what those issues might be.

Retail properties are clearly faring the worst of any sector in Australia, and is at the bottom for nearly every major city. That fact worries government officials, as the lack of retail growth will likely cause a further decrease in consumer spending.

There is some hope that every sector will some improvement over the next two years. Real Estate experts and government officials are certainly concerned, however, with the current state. They are looking at all potential solutions so as to avoid falling into the same crisis being experienced in the United States real estate market. There is little indication at this point as to why the residential market remains down in Australia, though uncertainty in the housing market and continuously dropping prices are definitely two leading factors.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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