Australian commercial property sales hit the $17 billion mark in 2013. This figure includes retail, offices, industrial and hotel assets and compares to the record levels set in 2012 of $20.6 billion. Furthermore, early indications point to 2014 being another strong year for capital transactions.
David Rees, the Australian head of research and consulting and Jones Lang LaSalle, stated recently that business confidence will improve and the leasing markets will start to stabilise.
He also predicted that 2014 will be the lowest year for supply additions since 2002 and, consequently, there may be sharp falls in Grade A vacancy rates with vacancies migrating to secondary-grade office stock.
Peter Carstairs, the general manager for research at Investa Office, said 2013 had been a year of restricted office demand across all CBD markets in the country. He went on to say that the market had made it through the worst of it and that 2014 would be a “year of recovery.”
Jones Lang LaSalle is predicting that direct investment in commercial real estate markets in the Asia-Pacific region this year will exceed last year’s transaction volumes, which are already at the strongest levels since before the global financial crisis.
The firm is predicting direct investment to reach $130 billion this year, which will outpace the $120 billion predicted for year-end 2013 and firmly put the region back at pre-recession volumes.
Previous Post
Birmingham to Get Two New Office Towers
