melbourne commercial property is performing strongly
News Posted On: 14 April 2011
Figures released by real estate consultants DTZ show that commercial property in Melbourne is the most sought after in Australia. Commercial property transactions for the fourth quarter of 2010 show that purchases in Victoria totalled $2.2 billion, compared to $1.3 billion in 2009. This accounted for 50% of all commercial property transactions compared to Queensland and New South Wales who each claimed 15% of total market transactions worth $1.3 billion.
Transactions during the last quarter of 2010 actually declined by 11%, but the total worth were $4.5 billion which is 66% higher than that for the last quarter of 2009. It's the thought this decline was only due to the previous quarter’s figures being skewed by a $1.6 billion investment in offices by Brookfield Properties. If this transaction is excluded then a 30% improvement in commercial transactions is registered.
Overall Australia remains popular with overseas investors who are attracted by its stable economy and the growing demand for Australian exports from Asia. It seems likely that Melbourne will remain the top performing region throughout this year, especially as future supply is constrained. This should lead to a lower vacancy rate and increasing rents.
The head of Asia-Pacific research at DTZ, David Green Morgan also feels that Queensland and Western Australia will prove popular with investors provided there is a sufficient supply. However there is a worry that the recent floods may impact this growth, although it is still too early to quantify the effect this may have on the market.
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