Office Briefing

Publication

Melbourne CBD Office Briefing Q2/2019

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.

Highlights

  • 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

Download the latest report here.