Outside of Perth, office rents have stalled; Commercial Property chart of the week
Outside of Perth and Brisbane, the nascent office market recovery has plateaued in the first half of 2012 due to investor uncertainty, says ANZ in its September Property Outlook report.
The chart below shows how Perth average rents have climbed since 2010 from around $500 per square metre to around $700 per square metre, with other capital city markets unable to match this growth.
In the case of Sydney, Melbourne, Canberra and Adelaide, rental growth has stalled.
Click to enlarge
"The weakening in Sydney,Melbourne and Adelaide has been particularly sharp as labour markets in those states have lost momentum," notes ANZ.
"Looking ahead, cost pressures will continue to weigh on the financial services and public sectors and will restrain the demand for office space, particularly in the south eastern states. Moreover, ongoing economic and financial market uncertainty will further delay any yield compression."