We welcome the further consultation on this, because we believe the proposals run contradictory to one of the Government’s other key objectives. The trend of increased activity from Wholesale Funds and Listed Property Trusts is apparent in larger acquisitions in the Gold Coast market. In sum total this Bill typifies a long-standing approach of governments towards the private rented sector – too much stick and not enough carrot. Regulation should be a last resort and countered with education and incentives for landlords – both absent in today’s pronouncements.
Gold Coast office market yields are currently in a range of 7.00% and 8.25% with the average yield moving below 7.50%, as continued investment demand from private investors at the lower end and institutions at the upper end contribute to ongoing strength to the market. While some house law offices tackle a conveyancing adelaide fees to handle out a few dealings, a conveyancer and property legal counselor may work exclusively. Supply in the Near City office market has been forecast to be subdued in the 2006/07 financial year however over 81,000 sq m is expected to be completed in the following year.
Growth in net face rents is expected to slow after strong growth over the last two years. ” Access Economic forecasts released in June 2006 identified ongoing strength in the key office fundamentals of White Collar Growth and Gross State Product. The White Collar employment growth rate is expected to be 2.50% during 2007 and range between 1.47% and 2.47% for the following five years. Gross State Product has been forecast to grow at an average of 4.82% over the next five years, slightly down on previous growth rates.
“New supply in the Near City market will see limited office space coming online during 2007” “However, Landmark White has identified 171,000 sq m of net additions to enter the market over the next five years. ” Projects of note to be added to the Near City supply include Stage 1 & 2 of Emporium and over 43,000 sq m of net let table area in Buildings 1 and 2 of Green Square expected to be completed during the second half of 2007 and 2008 respectively. ”
“Absorption in the Near City office market is expected to be impacted by the lack of supply over the next 12 months.” Results from our forecast have net absorption totaling 23,000 sq m in the year to June 2007. Landmark White has anticipated almost 31,000 sq m of absorption in the six months to January 2008 as increased supply supported by solid economic fundamentals and tenant expansions eases the pressure on the very tight market. Looking forward, Landmark White expects over 147,000 sq m of office space to be absorbed throughout the next five years.