The latest Property Council Office Market Report shows that Sydney is locked in battle with Melbourne for Australia's largest and most in-demand office market.
In the past six months to January 2019, Sydney's CBD vacancy dropped from 4.6 per cent to 4.1 per cent due to withdrawals from the market. Nevertheless, Sydney CBD still have the higher vacancy than Melbourne at 3.2 per cent.
With over 80,000 square metres entering the market in 2019 and over 100,00 square metres in 2020, there is more space in the pipeline for Sydney from this year onwards.
Strong demands from foreign investors looking for prime office space are interested in Sydney. The investment fundamentals are still solid in terms of a growing market with high returns and long leases available.
New office space and opportunities for investment will open up due to the completion of new transport projects including the North-West Metro and the South West metro in the years to come. Increase in diversity in demand for sectors as tech and pharmaceuticals may be feasible.
“The key will be creating the right environment for investment: we must get our CBD planning approach right to ensure we cultivate investment and ensure a competitive advantage over other CBDs in the Asia Pacific; attracting the best tenants and a strong pipeline of investment,”as said by the Property Council of Australia NSW Executive Director Jane Fitzgerald.
Article source: https://www.propertycouncil.com.au/Web/News/Articles/News_listing/Web/Content/Media_Release/NSW/2019/Sydney_locked_in_battle_with_Melbourne_for_top_office_market.aspx
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