market overviews

record low vacancy rates

 

 

Sydney CBD

The Sydney CBD market has recorded its lowest vacancy rate in more than 17 years at just 3.7%, according to the latest Property Council of Australia (PCA) Office Market Report, January 2008.

“The tight vacancy rate is a result of limited new supply over the past few years, a reduction in stock levels and strong tenant demand during 2006 and 2007,” said Cameron Williams, National Director of Office Leasing.

As the Sydney CBD market continues to tighten dramatically, gross face rents have risen accordingly. ”Gross face rents grew by 16% in the Sydney CBD during 2007 across all Grades and precincts. The greatest rental growth was witnessed in the Mid-Town and Western Corridor Prime Grade buildings which recorded 15 - 20% rental growth on average. The 'B Grade' market in the Core and Mid Town precincts also witnessed very strong rental growth in the order of 12 - 15% on average. Incentives reduced dramatically across the CBD in 2007,” said Mr Williams.

“Escalating project costs have impacted on the feasibility of development sites in the CBD placing a number of mooted sites into doubt. This will put further pressure on an increasingly tightening market in Sydney. It will now be at least 2011 before the new construction cycle gets underway.”

Select a Region

Brisbane

Sydney

Sydney Metropolitan

Melbourne CBD

Melbourne Metropolitan

Adelaide

Perth

Canberra
 
 

Disclaimer:

The opinions, estimates and information given herein or otherwise in relation hereto are made by Colliers International and affiliated companies in their best judgement, in good faith and as far as possible based on data or sources which are believed to be reliable. The material contained herein is not intended to substitute for obtaining individual advice from Colliers International or another advisor able to provide the services of a qualified professional person. Colliers International, its officers, employees and agents expressly disclaim any liability and responsibility to any person whether a reader of this publication or not in respect of anything and of the consequences of anything done or omitted to be done by any such person in reliance whether wholly or partially upon the whole or any part of the contents of this publication. COPYRIGHT Colliers International 2008 All rights reserved. No part of this work may be reproduced or copied in any form or by any means (graphic, electronic or mechanical, including photocopying, recording, recording taping, or information retrieval systems) without the written permission of Colliers International.