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Australian Commercial Property Update
The Property Council of Australia has released the latest figures for Australian commercial property for the quarter ending December 2010.
The Sydney CBD vacany rate fell from 8.5% to 8.2% this downward move was exaggerated for premium office space as vacancy rates fell from 4.8% to 3.1%, which is the lowest level in a decade. These rates were also supported by a fall in sub-leasing where companies are keeping their leased space rather than leasing it to 3rd parties. In Melbourne CBD the vacancy rate fell from 6.5% to 6.3%
Glen Byrnes from the Property Council told the Australian Financial Review that vacancies are back to pre GFC levels. Director of Research from Jones Lang LaSalle Andrew Ballantyne said rental growth will be quite strong over the next 2 years as supply dries up. At this point it would be expected that the developers would then become interested in new projects.
At the moment astute investors including very large super funds are looking to position themselves with acquisitions before the market turns leading to higher prices. REST and ARIA recently made purchases and the Future Fund is looking to purchase a property in Brisbane CBD.
With sound fundamentals there are plenty of opportunities for those that are patient.
The Sydney CBD vacany rate fell from 8.5% to 8.2% this downward move was exaggerated for premium office space as vacancy rates fell from 4.8% to 3.1%, which is the lowest level in a decade. These rates were also supported by a fall in sub-leasing where companies are keeping their leased space rather than leasing it to 3rd parties. In Melbourne CBD the vacancy rate fell from 6.5% to 6.3%
Glen Byrnes from the Property Council told the Australian Financial Review that vacancies are back to pre GFC levels. Director of Research from Jones Lang LaSalle Andrew Ballantyne said rental growth will be quite strong over the next 2 years as supply dries up. At this point it would be expected that the developers would then become interested in new projects.
At the moment astute investors including very large super funds are looking to position themselves with acquisitions before the market turns leading to higher prices. REST and ARIA recently made purchases and the Future Fund is looking to purchase a property in Brisbane CBD.
With sound fundamentals there are plenty of opportunities for those that are patient.
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