Future looks bleak for Brisbane and Perth car park rentals: Savills

Future looks bleak for Brisbane and Perth car park rentals: Savills
Jennifer DukeDecember 7, 2020

The maximum rental available for permanent CBD car spaces have been said to have stalled across Australia, notably in line with a marginal change in office vacancies. However, the situation is expected to worsen in Brisbane and Perth, according to Savills Australia.

The Savills’ Quarter Times reports data has looked at rent achievable on car parks across the country.

{plotalot id="21"}

In Melbourne, car space rentals saw some upwards movement from a maximum of $600 per space per calendar month to the end of June 2013, to $700 this year – a 17% increase.

Adelaide, Brisbane and Sydney remained static at $375, $600 and $800 respectively. Perth also saw no change, at $765, despite reporting one of the strongest increases in office vacancies across the mainland – of 2.7%.

The end of the mining boom may negatively impact car park rentals in Brisbane and Perth, explained Savills national head of research Tony Crabb.

Brisbane’s state government staff cuts may also exacerbate any downturn, along with a trend of businesses moving to the city’s fringe, said Crabb.

He also noted that the city’s office vacancy rate currently tops those of the mainland capitals, at 14.7%.

Perth’s rents have also been stable over the past 18 months, but Crabb expects this to alter soon.

“However, as with the other key non-mining state, Brisbane, we do expect some negativity over the next 12 months given the dramatic rise in office vacancy,” he said.

While in Melbourne, the strength has come about due to government changes.

“The Melbourne market, for example, has been largely influenced by a 2006 state government congestion levy on both public and private car parking spaces within Melbourne CBD as well as a virtual cap placed on the number of car spaces approved in new buildings in and around the CBD,” he explained.

Sydney’s lack of growth was noted to be as due to the GFC, however an upward trend is expected by Crabb over the next 12 months.

Adelaide is expected to remain stable for the next 12 months. Rents may, however, be altered by a proposed new $750 per space levy bill currently before parliament.

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

Editor's Picks