Office Market Heats Up
Perth’s central office district has been tipped to hit a new peak in value over the next 12 months, with research indicating it has become the tightest capital city for space as well as having the most expensive and fastest-growing rents in Australia.
Research released early this week said Australian office markets recorded 5.8 percent prime net face rental growth in the 12 months to March, the highest level since the depths of the global financial crisis in December 2008.
The report predicted capital values for prime office assets in Perth, Melbourne and Adelaide were on track to recover the losses caused by the GFC, but other Australian capitals would be saddled with higher vacancies over the next few years.
Perth’s vacancy rate came in at 3.3 per cent, according to the survey, by far the tightest CBD market in the country.
Perth also lodged the most expensive capital values on average, at $9,276/square metre, followed by Sydney at $8,802/sq m Brisbane ($8,040/sq m and Melbourne ($6,426/sq m)
The prime driver was Perth’s burgeoning resources sector, which pushed average net face rents up to $743/sq m, the report said.
Sydney was the next most expensive, with rents hitting $651/sq m, while Brisbane was ranked third, at $634/sq m.
Courtesy WA Business News, Dan Wilkie