The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
25 DAYS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
25 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
17
print
Print
OfficeThu 25 Oct 18

Office Market Showing No Signs of Slowing: Dexus

3c52247b-7a92-439e-b439-fd9adf15c388

Strong employment growth and positive business confidence continue to support office investments across the major capital markets, with no sign of office occupier demand slowing according to a Dexus report.

The Australian Real Estate Quarterly Review, released this week, shows office investments are continuing to perform well in Australia’s relatively steady growth environment.

“The office vacancy rate for Melbourne CBD is four per cent, the lowest in 30 years, while the Sydney CBD (4.7 per cent) recorded its lowest in 18 years,” Dexus general manager Peter Studley said.

Related: Dexus Affirms Guidance After Strong Leasing Across ‘Solid’ Office Markets

Melbourne’s CBD office vacancy rate of 4 per cent is the lowest in 30 years.


“Melbourne is benefiting from a boost in Victorian population growth.

“While a lack of availability of large continuous office space is limiting absorption in Sydney's CBD, office enquiry levels are up substantially from last year,” Studley said.

This week property giant Mirvac reported solid returns underpinned by the company’s strong yielding office portfolio, in which Mirvac’s chief executive Susan Lloyd-Hurwitz described it as “the growth engine of the business over the next stage of the real estate cycle”.

Mirvac maintained 97.2 per cent occupancy across its office pipeline during the quarter while completing 11,000sq m of leasing activity.

The Dexus report shows Sydney recorded negative net absorption of -12,000sq m, largely due to the withdrawal of 66 King Street for refurbishment and smaller tenants leaving the market.

While Melbourne continued its solid run recording net absorption of +79,800sq m in the third quarter, “its strongest quarter in more than a decade”.

Q3 2018 Office Snapshot

JLL Research/ Dexus Research


Brisbane bounced back following a subdued second quarter to record net absorption of +15,400sq m in the third quarter, and a slightly reduced vacancy rate of 13.9 per cent.

While Perth's vacancy rate increased to 22 per cent, Perth continued its steady improvement recording +17,600sq m of net absorption.

OfficeAustraliaSector
ADVERTISEMENT
TOP STORIES
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
View All >
The construction site which will one day become Newcastle Tallest Tower by Urban Property Group
Residential

Urban Property Group Reveals Newcastle Tallest Tower Plan

Renee McKeown
RCQ plan to convert 126-140 Bulcock Street, Caloundra into a 13-storey complex with ground floor retail according to the plans submitted to Sunshine Coast Council.
Residential

RCQ Files Triple-Tower Scheme for Caloundra Main Strip

Renee McKeown
Rumi on Louth Villa aerial view
Hotel

Rumi Resort Plots Cabins for Villas Switch on SA Island

Leon Della Bosca
The developer wants to vary its approved second stage, opting for mixed accommodation to broaden its market appeal…
LATEST
The construction site which will one day become Newcastle Tallest Tower by Urban Property Group
Residential

Urban Property Group Reveals Newcastle Tallest Tower Plan

Renee McKeown
3 Min
RCQ plan to convert 126-140 Bulcock Street, Caloundra into a 13-storey complex with ground floor retail according to the plans submitted to Sunshine Coast Council.
Residential

RCQ Files Triple-Tower Scheme for Caloundra Main Strip

Renee McKeown
2 Min
Rumi on Louth Villa aerial view
Hotel

Rumi Resort Plots Cabins for Villas Switch on SA Island

Leon Della Bosca
4 Min
Finance

HCP: Real Projects, Real People, Real Returns

Partner Content
5 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/sydney-and-melbournes-office-market-strength-dexus