CBD OFFICE VACANCIES DROP

Written on the 28 September 2011

CBD OFFICE VACANCIES DROP

NEGATIVE supply in commercial property has led to a decline in Brisbane’s office vacancy rate, a new quarterly report has found.

The latest Midwood Queensland Investment Report shows the CBD office market vacancy rate declined by 7.4 per cent during the three months ending August 31, 2011.

Report author Bill Morris says the figure indicates that Brisbane does not require a new wave of mixed use developments to meet demand.

“There is less demand for office space due to the state of the economy. There are fewer businesses starting up due to the lowering of economic activity,” he says.

The volume of unconditional sales of new high-rise apartments in Brisbane is 133, representing a 46.6 per cent fall from the previous corresponding quarter. The number of new high-rise apartments for sale remains relatively high at 1550.

For the six months ending June this year, the value of work to be done on non-residential projects in Queensland is $8.96 billion compared with $11.20 billion from the previous corresponding period.

“The fact that work has decreased reflects that fewer new projects have been approved, particularly for offices,” says Morris.

Reserve Bank of Australia governor Glenn Stevens has expressed frustration about why housing cannot be made cheaper when there is no shortage of land. However, Morris believes higher standards and charges imposed on developers are lifting prices.

“All subdivisions have to have offsite sewage treatment plants instead of a septic tank, making it very expensive. New charges for building infrastructure such as stormwater drains have to be paid by developers that pass (the bill) on to consumers,” says Morris.


Latest News

SUPREME COURT ORDERS OCTAVIAR GROUP TO WIND UP

THE Queensland Supreme Court has ordered the Octaviar Group of companies (formerly known as MFS Group) to be wound...

CEOS BRAVE THE COLD TO RAISE $1.4 MILLION FOR THE HOMELESS

MORE than 400 executives confronted the cold last night in the annual Vinnies CEO sleepout, which took place benea...

JENNIFER WESTACOTT ON BANK TAX: IT EXPOSES GOVERNMENT "DESPERATION"

South Australia's new bank levy exposes the desperation of a government that is unable to get its own budget and ...

BASKETBALL'S COMEBACK CONTINUES WITH NBL CLUBS TO FACE OFF AGAINST CHINA'S NATIONAL TEAM

THE RESURGENCE of Australia's National Basketball League (NBL) continues with China's national team to play t...

Related News

BASKETBALL'S COMEBACK CONTINUES WITH NBL CLUBS TO FACE OFF AGAINST CHINA'S NATIONAL TEAM

THE RESURGENCE of Australia's National Basketball League (NBL) continues with China's national team to play t...

DOMESTIC TOURISM IN AUSTRALIA BREAKS RECORDS, INJECTS $61.7 BILLION INTO NATIONAL ECONOMY

DOMESTIC Australian tourists have spent a record breaking $61.7 billion on intra and interstate travel this year, acc...

THE DOCTORS WHO PLUNGED INTO THE SHARK TANK AND SURVIVED WITH A $500,000 INVESTMENT

THEIR mission is to change the face of cancer care with an app that empowers and connects patients and care givers...

IMF BRACES FOR BIG LOSS FOLLOWING WITHDRAWAL FROM SPOTLESS CLASS ACTION

LITIGATION fund IMF Bentham (ASX: IMF) is set to lose as much as half a million dollars after it ceases funding one o...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter