Brisbane and Perth
’s office markets are head and shoulders above their state capital counterparts in terms of capital returns, according to ANZ’s latest Commercial Property Outlook
The ANZ report cited strong local economies and low office vacancy rates as major factors in stimulating capital returns last year of 22% in Brisbane and a massive 41% in Perth.
“Brisbane and Perth CBD markets are both experiencing acute tightness, with vacancy rates effectively at zero. Market values have correspondingly shot up,” said ANZ senior economist Ange Montalti.
Montalti also pointed to good performances in the Sydney office market, where a low level of new developments and tightened vacancy rates fuelled capital growth of 13.4% last year, and he expects rental values to remain stable.
“Vacancy rates have tightened substantially and are set to fall to an effective ‘zero’ as the supply pipeline remains subdued. Medium-term fundamentals remain intact with little likelihood of a construction boom to undermine rental values,” Montalti said.
office properties showed less impressive growth of 10.2% last year, according to the ANZ report, but Montalti believes that the South Australian capital’s office market shows no signs of crashing. “While we expect some slowing in economic growth and in the consequent take-up of office space, the supply pipeline remains manageable and is unlikely to destabilise fundamentals.”
Melbourne offices are performing well, with vacancies at below average levels and a number of commercial developments going up in the Docklands
precinct, but the ANZ report highlighted certain factors that could affect future growth in the Victorian capital.
“A key risk for the Melbourne market is an overzealous development sector failing to take heed of the likely fall in absorption. We expect vacancies to lift gradually from 4.4% currently to around 9% by 2010. This shouldn’t destabilise the market but suggests rental and capital growth may be more difficult to achieve later in the cycle,” said Montalti.
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker
Top Suburbs :
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.
We value your privacy and treat all your information seriously - you can check out