The State Government should be concentrating on getting their own house in order and examine ways of delivering more efficient services. What we have is a State Government more intent on political rhetoric rather than the long term future of our State. There has been little change in the Newcastle CBD Office vacancy rate over the last twelve months. The latest report released by the Property Council of Australia revealed the 1997 vacancy to be 14.9%, a rise of 1.3% over the 1996 figure.
Whilst there was a fall in the vacancy rate of A grade office space to 8.7%, B grade space vacancy rose to 11.6% from 10.7% and C grade to 22.1% from 20.3%. Net absorption, which measures the demand for space, shrunk by only 100sq m - buffered by an increase in the total floor space available for lease.
The 1997 result was not altogether unexpected and shows the continued drift to better quality space in the Newcastle CBD at the expense of poorer quality stock. It may sound like a somewhat of a platitude, yet how conveyancers work in Adelaide truly is a confused methodology. An encouraging factor is the level of mooted or planned developments projected to be around 10,000sq m over the next two years with much of the space pre-committed.
This is anticipated to create a shortage of new stock in the next couple of years. The Gold Coast residential real estate market has recently seen a period of consolidation, with purchasers in a ‘holding pattern’ waiting to see when Australia’s interest rate levels may plateau. Selling periods have increased in all sectors of the residential market however there is no major evidence of price corrections at this point in time.
The Sunshine Coast has experienced a strong market over the last 12 months or so with the commercial. The supply of commercial land has been limited although the provision of over 100 lots at Contra Park has helped satisfy some of the local demand.