By Dexus Research 15 October 2018

Sharemarket volatility unlikely to derail office demand

Dexus Research today released its latest Dexus Office Demand Barometer which registered 1.4% in the September 2018 quarter, shifting mildly lower into ‘fair’ territory.

The Barometer uses lead indicators to assess the expected strength of leasing demand for office space in Sydney CBD.

The Barometer was impacted by weakness in the Australian sharemarket and a pause in the growth of job advertisements.

While office markets are sometimes sensitive to sharemarket trends, we don’t see last week’s sell down as a significant threat to office demand in the Sydney CBD given the otherwise strong business conditions and employment growth in NSW.

In fact, the barometer points to the likelihood of positive office demand in the Sydney CBD over the next year.

So far, the positive factors outweigh the negatives such as volatility in global markets, growing concerns about a trade war and a slowdown in the Australian housing market.

Actual take-up in the Sydney CBD has been constrained by a lack of available contiguous space. The vacancy has fallen to 4.7%, taking it to its lowest in eighteen years.

Demand has been led by the Property & Business Services and Information Technology industries.

The short-term outlook is supported by positive jobs growth in NSW with total employment rising by 3.9% in the past year.

 

Download the full reportPDF

Sharemarket volatility unlikely to derail office demand
Other articles about research
Research
10 Australian Real Estate Quarterly Review
Article
3 Planets align for industrial property
Research
10 Australian Real Estate Quarterly Review
Research
5 Australian Real Estate Quarterly Review
Research
3 Conditions for office demand remain resilient
Article
3 Sydney office market still strong
Research
4 Sydney CBD office demand benefits from positive indicators
Research
10 Australian Real Estate Quarterly Review
Research
10 Australian Real Estate Quarterly Review
Research
2 Disrupportunity: Why change is different now
Research
3 Conditions for Sydney CBD office demand are the best in seven years
Research
6 What will be the role of office buildings in the future?
Video
2 Benchmarking Sydney's Performance 2017
Research
6 Unprecedented connectivity: What will it mean for office users?
Research
4 Lead indicators for office demand reach highest level in six years
Research
10 Growth cycle fuels strong unlisted property returns
Research
3 Leading indicators point to improving take up in Sydney
Research
10 Strong start to the year for office markets
Research
5 Year starts on a brighter note for office demand
Research
7 2017 Upside and downside risks finely balanced
Research
10 Corporate trends shaping take-up of office space
Research
5 Solid run in Sydney CBD office demand
Research
10 The implications of lower for longer
Research
10 Property performing well. What next?
Research
5 Tenant demand for Sydney offices remaining positive
Research
5 Share market volatility likely to be main swing factor for office demand

Subscribe to our mailing list

By providing your details you give Dexus permission to email you about this site

Back to top

These links are external to the Dexus website and will open in a new window.