CBD Office Shortage Looming for Melbourne
Posted on 18. Jun, 2009 by Chris Lang in Investment Objectives, Investment Opportunity, Office Markets, Property Cycles
And Rentals are Set to Rise ...
The recent boom period saw prime Office rentals in Brisbane, Sydney and Perth hit the $1,000 per sq metre mark. However, they have fallen dramatically from that peak, since mid-2008
Meanwhile, Melbourne has remained steady at around $750 per sq metre — mainly because most of its new development has occurred in pre-committed medium-rise buildings, within the Docklands precinct.
Furthermore, the Melbourne CBD Office market has absorbed the most space of all Australian capital cities during the past 12 months — reaching more than 100,000 sq metres, for the fifth consecutive year.
As such, a recent survey by Savills predicts Melbourne's prime rentals are poised ready to surge over the next 3-4 years. And they could break through $1,000 per sq metre, in buildings like 101 & 120 Collins Street — due to a shortage of supply.
This offers you a great opportunity to refurbish older buildings to a high standard — avoiding the usual lead-time of 4 to 5 years needed for any newly constructed buildings.
