ACT commercial rents could ease
A recent study has shown that the market for commercial real estate in the Australian Capital Territory may experience a reduction in rental rates over the short term as the ratio between demand and supply eases.
The Property Industry Confidence Survey has shown that 47 per cent of professionals believe that rents will ease over the next three months.
This is in line with the slight shift in confidence recorded by researchers - with a dip of seven points over the last quarter from 102 to 94.
As Property Council ACT executive director Catherine Carter explains, the fact that the measure has gone below the 100 point mark is significant as the score symbolises a neutral outlook for the medium term.
This view was backed up by the head of Property Research at ANZ Paul Braddick, who said that while housing markets had "performed well compared to other Australian capital cities," the office market was likely to experience a reduction in turnover.
"On balance, the Property Industry Confidence Survey also showed a negative outlook for capital growth expectations across all commercial property sectors," asserted Braddick.
This slower period of growth could give businesses looking to improve their location the opportunity to make a move while rental rates and prices are reduced.