By Dexus Research 09 May 2017

Strong start to the year for office markets

The Australian Real Estate Quarterly Review Q2 2017 with the focus this quarter on the positive outlook for office markets. 

Investors in office buildings are benefiting from a strong start to 2017, with double digit rental growth in Sydney and Melbourne.

Sydney CBD recorded just over 28% growth in net effective rents over the past year, the fastest pace of growth in seven years and most of the eastern seaboard office markets recorded solid increase in rents. The gains are being driven by a growing shortage of office space as vacancy rates fall below average.

It’s pleasing to see that the growth phase is now being realised. 

Our confidence in office markets was based on the knowledge that companies, particularly small companies, were hiring and that withdrawals of older office buildings would help offset new supply. 

Occupier demand was positive in all four major CBDs in the first quarter of 2017, including in Brisbane and Perth. 

With the next supply cycle several years off, the short term outlook is buoyant, particularly in Sydney and Melbourne, Australia’s largest office markets.

Download the full reportPDF
Strong start to the year for office markets
Other articles about research
Research
10 Australian Real Estate Quarterly Review
Research
5 Sharemarket volatility unlikely to derail office demand
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
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

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