Office property demand to surge over next 18 months
The commercial property market is set to tighten in Perth and Brisbane in the next 12 to 18 months, ...
The commercial property market is set to tighten in Perth and Brisbane in the next 12 to 18 months, while real estate opportunities will open up in Melbourne, Sydney and Adelaide.
According to the Asia Pacific Office Market Forecast for 2013, demand is expected to grow for premium office space in a number of Asian and Australian cities, driving up rents as a result.
The report, which was conducted by global property consultants Cushman & Wakefield, predicted a lack of new projects in some regions will work against investors looking for CBD real estate.
"The dearth of new supply will sustain tight occupancies in Brisbane, Manila and Perth while the completion of several new projects in some China and India cities will provide occupiers seeking top-tier space a chance to expand," Asia Pacific managing director for research Sigrid Zialcita said.
In comparison, the completion of new construction developments in Melbourne, Sydney and Adelaide will deliver more office real estate options in line with increasing demand.
Cushman & Wakefield executive managing director for capital markets John Stinson said the yield interest-rate spread for core property is at a record-high in Australia's two biggest cities.
"With increased investment activity, we anticipate that sometime during 2013 cap spreads will peak, particularly in favoured markets of Tokyo, Seoul, Singapore and east coast Australian cities,'' Mr Stinson explained.