BRISBANE AND GOLD COAST COMMERCIAL PROPERTY MARKETS TIGHTEN
Written on the 2 February 2017 by Business News Australia
BRISBANE'S commercial property market performed at five times its historical average in the six months to 31 December as the city's vacancy rate dropped from 16.9 per cent to 15.3 per cent, according to the latest Property Council's Australian Office Market Report.
"Throughout 2016, a significant quantity of sub-lease space transacted in Brisbane with tenants housed in secondary assets taking the opportunity to upgrade into fitted premium accommodation at discounted rentals," he says.
"With the majority of development-led lease tails now absorbed, and the contractionary phase of the cycle well and truly past, Brisbane has trended back to a predominantly direct vacancy market."
While Sydney, Melbourne and South East Queensland performed well, Darwin (22.5 per cent), Adelaide (16.2 per cent) and Perth (22.5 per cent) are continuing to struggle.
The report shows that Australian CBD markets will have 462,000 sqm of space come online in the next three years, around half the new supply that CBD markets have experienced over the past 18 months.
"Gold Coast recorded one of sharpest declines in vacancy across all Australian office markets over the second half of 2016," Queensland executive director of the Property Council, Chris Mountford, says.
"With the exception of D-Grade buildings, vacancy levels on the Gold Coast have dropped across all office grades and in nearly all locations.
"While it is positive to see demand and withdrawals keeping pace with new supply over 2016, Queensland is still experiencing historically high office vacancy," says Mountford.
CBRE's associate director, advisory and transaction services office on the Gold Coast, Nick Selbie, says net absorption will continue in the city through 2017.
Author: Business News Australia