Rising demand from the resources sector for office space in Perth’s CBD has been identified as the key driver of the highest rental growth across Australia since December 2008, CBRE says.
CBRE’s Australian Office Market Report, released today, said Australian office markets recorded 5.8 per cent prime net face rental growth in the 12 months to March, the highest level since the depths of the global financial crisis.
“Perth has recorded four consecutive quarters of net face rental growth in excess of 2 per cent, with growth peaking at 4.1 per cent in Q4 2011,” CBRE senior manager, research and consulting Luke Nixon said.
“In an interesting contrast, a strong resources sector in Queensland did not lead to strong rental growth in Brisbane during 2011.
“In the year to March 2012, rents grew by just 1.6 per cent as the market dealt with the after-effects of the floods coupled with a stronger supply pipeline.”
The report predicted capital values for prime office assets in Perth, Melbourne and Adelaide were on track to recover the losses caused by the GFC, but other Australian capitals would be saddled with higher vacancy rates over the next few years.
CBRE regional director of office services James Patterson said momentum was building in Perth’s office market, with a recovery “well and truly underway”.
“With the Australian economy likely to continue growing at two distinct speeds, mining and resource projects are expected to drive the Perth CBD to the head of the pack as the city’s vacancy trends towards zero,” Mr Patterson said.