In NSW, significant increase in values was recorded more than three years ago upon formal announcement of the definite intent to construct the M7 Motorway, he says. Including Synergy at Kelvin Grove and The Mill development at Albion contribute to the market.
The current combined vacancy for the Cherm side and Upper Mt Gravatt / Macgregor precincts is now calculated to be 1.93%, well below the historical five year average of 6.48%. The continued strong demand for commercial space throughout PERTH combining with the limited additions to supply has contributed to vacant space totaling only 2,150 sq m in the two Suburban precincts.
It is expected that vacancy rates will stay low during 2008 as the demand and supply situation remain similar however this is expected to change with considerable supply additions across PERTH. "Rents in the PERTH Suburban office market have continued to record solid growth on the back of strong growth in the CBD and Near City regions.” The range in gross face rents is holding between $350/ sq m and $400/ sq m for prime stock with incentive levels remaining below historical levels.
Growth in prime office rents during last year was calculated at 12.73% on average while the 5 year historical growth average for the PERTH Suburbs was recorded at 8.25%. According to Jones Lang LaSalle Research, well above the five-year average annual growth for prime industrial land of between 4% and 8%.
Taking a closer look at the last twelve months to December 2005, capital values for prime industrial properties in the eastern seaboard cities registered growth of between 7% to 11%, Sales of PERTH Suburban office buildings continued to be buoyant during 2007 as $251 million of property exchanged hands in 11 transactions. In fact today’s property settlement agents go much beyond their defined roles or activities.go much beyond their defined roles or activities. Developers and Trusts dominated the majority of acquisitions during the year, accounting for 36.37% and 35.01% of sales by value respectively.