Melbourne CBD Office Briefing: Q2/2019
We are pleased to release the Q2/2019 Office Briefing Notes for the Melbourne CBD, which outline key metrics across each market along with detailed commentary on leasing, sales and development activity.
- The June 2019 quarter experienced its largest transaction in Australian history
- Low vacancy continues to drive rental growth, with growth rates running above long-run averages, while the lack of stock is decreasing leasing activity
- High demand remains with new CBD developments pre-commitments at 85%
- Australian Institutional Funds overtook Foreign Investors as the key player in Melbourne CBD transactions, accounting for approximately 40% of sales volumes
- Average Prime net incentives have decreased from a high of 31% in 2014 to approximately 25% as at June 2019
- Savills Research expects Melbourne Office the yield compression cycle to continue. Comparatively competitive pricing remaining attractive on a global basis