Predictions & economic forecasts for 2018 show that the market prices of rent is anticipated to continue to grow in Sydney. Still the expectations of how much it will increase by is estimated at 10%. With two thirds of agents and tenant reps expecting there to be an at least 5% effective rental increase directly in Sydney.
The report says that the most likely cause of office re-location in Sydney is being driven due to lease expiration, whilst in Brisbane the studies are showing it’s due to the opportunity of being able to upgrade their office accommodation.
The Australian Bureau of Statistics reports that NSW & VIC are continuing to be at the forefront of national economic growth, whilst QLD is slowly climbing to positive economic growth territory.
In reflection of these economic drivers, respondents were almost entirely of the view that Sydney office market favours landlords rather than the tenants. Whilst in Brisbane there is a strong indication that their market is certainly in favour of the tenants.
Tight Vacancy and increasing rental rates is not driving tenants out of the Sydney CBD, according to agents & tenant reps. Interestingly enough, equally high levels of vacancy rates & really good leasing terms are not drawing in the crowds in the Brisbane CBD.
When tenants moved, it was within the same sub-market. This probably due to a likely combination of different factors such as low vacancy rates in the Sydney Metropolitan Markets as well as wanting to be in the CBD to help with staff retention & Attraction.
