Wholesale funds continue to dominate the investment landscape over this period representing 52.39% of all turnovers, "Private Investors also rate highly at 19.52% as high net worth individuals seek alternate investment vehicles from superannuation, stock market and residential property.”
"Thirdly, 11.55% of sales value have been invested by Developers, these properties represent older style stock which may be refurbished or have redevelopment potential.” Prime yields within the suburban office market like most office markets across the country continued to see compression throughout 2007. Prime yields for December 2007 were recorded between 6.00% and 8.25% with an indicative of 7.15%.
it is unlikely further tightening will occur during 2008 given the limited rental growth outlook and uncertainty surrounding interest rates which may result in a slight lift in average yields particularly across secondary stock and for properties without secure lease covenants. The Brisbane Suburban office markets have seen limited supply added during 2007 with the precincts of Chemise and Upper Mt Gravatt / Macgregor recording additions of 66,610 sq m since 2003.
Landmark White has continued to monitor new projects entering the market and has found over 212,000 sq m of office space in the pipeline at various stages as part of 34 developments, an increase of 21,000 sq m in the last six months. Working under the guidance of act conveyancing Sydney is a beneficial task for you so that no mistake will be done in the process.
With over 50% of the pipeline total awaiting approvals from council and significant supply about to enter the Near City office markets, The most significant project recently added to the Brisbane Suburban office pipeline is the development application submitted by Stock land to construction two new office towers and replace two existing blocks in a staged development at Garden Square Office Park, Upper Mt Gravatt. The rate of absorption in Charm side and the Upper Mt Gravatt / Macgregor markets continues to be impacted by the lack of substantial supply and the withdraw of almost 24,000 sq m in the last five years.