market overviews

record low vacancy rates

 

 

12 Month Outlook


Source: Colliers International Research 2008

Select a Region



Brisbane

Sydney

Sydney Metropolitan

Melbourne CBD

Melbourne Metropolitan

Adelaide

Perth

Canberra

National Overview

The effects of the US sub-prime mortgage crisis and the ensuing global credit crunch have made their stamp on Australia’s property markets. According to Simon Hunt, Managing Director of Office Leasing at Colliers International, “Although the global financial uncertainty, stock-market volatility and increased cost of debt has made an impact on the office investment side, we have also seen a slowing down in tenant demand in the first half of the year across the majority of Australian office markets. Occupiers are taking a wait-and-see approach before deciding on any commitments. Australia’s office markets are extremely tight, with most markets recording the lowest vacancy levels on record. Perth’s CBD continues to be the tightest market globally at 0.5%, followed by Brisbane at 0.7%.”

Vacancy levels are expected to remain stable going forward, however some markets may witness further reductions as supply levels remain constrained.

The historically tight market conditions coupled with strong demand and limited new supply throughout 2007 resulted in many markets witnessing exceptional face rental growth of 10 – 20% on average.

“We expect marginal rental growth to continue over the next 12 months in most markets; however it is likely that they have peaked in the Perth and Brisbane markets," said Mr Hunt.
 
 

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