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.
