According to the latest Property Council of Australia data (July 2006), the Melbourne CBD recorded a staggering net absorption figure in the last six months of 173,121 sqm, bring the total absorption for the last twelve months to 213,159 sqm.
These are the highest six and twelve month net absorption figures for Melbourne since PCA records began in 1990.
Conditions have tightened across the market reducing total vacancy of prime stock to 1.4% and secondary stock to 2.8%. With the mining and resource boom the primary driver of the market, demand is strong and supply is restrained.
In the June quarter 2006, the seasonally adjusted estimate of total building work done rose in all of the states and territories except Tasmania (-9.1%). The largest rises were in the Northern Territory (+17.6%), the Australian Capital Territory (+15.5%) and Western Australia (+12.6%). Read more …
This would seem to add weight to what I covered on the Australasian Construction Climate in the March eBulletin.
In 2005-06, more than two-thirds of employed men aged 15-19 years worked in the Retail trade (42%), Construction (15%) or Manufacturing (11%) industries. Most of those working in Retail trade were employed part-time (77%), though part-time workers were much less prevalent in the Construction (14%) and Manufacturing (20%) industries.
Property Investment Research estimates that yields on Retail property have sunk to 5.75%, on Office property 6.75% and on Industrial property 7.5%. And some of the major players are starting to look off shore to satisfy the expectations of the members of the Funds. Read more …
In an earlier eBulletin, we also gave you an analysis of how Commercial yields vary over time.
The sole purpose for creating this Blog (and our Website) is to provide you with as much inside information as possible. And it is from all the insights I’ve gained over the past 35 years, that you can hopefully benefit.
You may think you’ll be going over old ground, or even that this maybe quite unnecessary … but every so often it helps to review your Investment Objectives and Buying Criteria.
The 20 key items I’ve given you here are merely your starting point — because you will no doubt adapt and expand upon them to suit your own investment style. But you do need to establish your own Blueprint.
The demand for suburban offices is strong, and construction is underway for 848,000 sqm of space across some 90 projects.
Land Mark have just released a detailed report showing you the latest facts and figures.
Hawthorn has been the pacesetter in Melbourne’s suburban office market this year with limited opportunities for new development and tenant demand for extra or improved space driving up rents and pushing down vacancies.
But while Hawthorn — and particularly Burwood Road — in the inner east has been red hot, the opposite story has come out of the suburbs of Mount Waverley and Mulgrave, where an over-supply of office stock has failed to be absorbed and rents have been stagnant.
