A National Bank of Australia (NAB) survey has revealed Thursday that capital values will be raised across all commercial sectors, as expansion in commercial properties is expected over the next 12 months with the office sector coming out as the lead player, edging out the retail and industrial sectors.

According to AAP, the NAB sponsored Quarterly Australian Commercial Property survey identified the office sector as the best bet for good investment opportunities as a great majority of those polled expressed belief that all markets, except the industry sector, will be carried through recovery path by 2010's third quarter.

The survey said that capital values in the office sector are projected to grow by 3.3 percent while retail would gain by 2.4 percent and the industrial sector could still manage expansion by 1.8 percent.

In identifying locations for possible growth activities, Melbourne emerged as the clear choice of developers and investors in the office market, as its A Grade central business district (CBD) stock trounced close competitor, Sydney CBD.

The survey also showed that vacancy expectations for commercial markets generally picked up as retail vacancy is expected to jump a bit within the next six months.

More than 75 percent of developers polled gave hints that they will be starting new projects within the next 12 months where about 70 percent of land to be developed is already in existing ownership.

Those polled said that debt sourcing will be much easier for the coming three months where about 50 percent of respondents are looking for more debt source within the next six months, at the same time expressing belief that acquiring equity may prove to be a bit harder.

Also, about 22 percent of those polled expressed confidence that debt additions will be nearly out of the picture, as compared to last year's 46 percent and showing signs of upbeat mood for the property market.

The AAP report said that the NAB survey listed the present top five concerns for property businesses are stock availability, debt sourcing, interest rates, business costs and equity availability.