UBS wrong about the Sydney Office market

There are at least 10 reasons why the UBS Evidence Lab may be underestimating the scope of the Sydney office market. So what's really happening and why is this time different?

Post GFC, the demand for office space has been very minimal and few developers or owners were looking to produce more office stock. When Lendlease released Barangaroo, they supplied almost 300,000 square metres of office space into the market and scared off other developers.

While the Sydney Light Rail Project and the Metro alone have provided significant job opportunities, the demolition of 60,000 square metres of office space has had a major effect. Office buildings are now being replaced with higher yielding apartments, causing development land prices to increase significantly. 

The recent development of Barangaroo and an infrastructure boom has had some unique effects which would have been very difficult to predict.

Source article: http://www.afr.com/real-estate/ubs-wrong-on-sydney-office-investa-20171024-gz7m22 

Image source: https://pxhere.com/en/photo/656039