 Colonial First State head of wholesale property funds Tim Stringer said that rather than hiding bad deals, the bullish commercial property market was hiding bad managers.
Speakers at yesterday's congress were asked if the level of complex financial engineering in recent property transactions would cause investors pain in the future.
CB Richard Ellis senior managing director corporate, Stephen Ellis, said fund managers would have to work harder in the future.
"The free lunch is over," he said.
Despite expectations of a riskier property market, most speakers had an optimistic outlook for commercial property returns.
The shortage of skilled workers in the economy and in particular the property sector was named as the factor that would most affect future property returns, following a survey of 450 property executives before the conference.
Other factors were less disposable household income and rising interest rates.
The skills shortage had become one of the big issues, Mr Stringer said.
"With yield compression (rising values), if you don't have the skill set, then it's a higher risk to your investors," he said. |
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