Sydney's commercial property market growth could be slowing
Demand for commercial property in Sydney is starting to follow a 'cool-down' pattern, ...
Demand for commercial property in Sydney is starting to follow a 'cool-down' pattern, according to recent research.
The Royal Institution of Chartered Surveyors (RICS) has released a study that indicates a decrease in the demand for prime office real estate in the NSW capital - despite a number of high-profile leases recently being signed.
While retail rental outlooks remain positive, the slow growth recorded in the region is most likely due to a conservative outlook presented by tenants as they consolidate their assets heading into the holiday season.
The fact that demand has dipped into the negative for the first time since 2009 should not be seen in a short term context, according to the report's authors.
Rather, they assert that the figures need to be viewed "in the context of an extended period of strong economic growth and a healthy performance from the real estate sector".
This sentiment was echoed by RICS Asia Pacific managing director Kaye Herald, who stated: "The Oceania market is following the global trends as economic conditions cool."
While on the face of it a property slowdown is not an ideal situation for investors looking to sell, tenants and prospective buyers may be able to find new premises in and around Sydney at reasonable rates.