Commercial property investors in Canberra call for political clarity

The possibility of a hung parliament is creating disquiet among business owners and commercial real estate investors in Canberra according to Raine & Horne who believe the current instability is hitting the local commercial property market.

Nick Cotis, director of operations Raine & Horne Commercial Canberra said institutional clients are worried the main political parties will be required to shift public sector agencies interstate as part of their negotiations with minor parties and independents.

“This will create a commercial office glut and long-term vacancy rates will blow out, with a consequent hit to yields also a distinct possibility,” he said.

“A constant theme among our investors is that it’s 2016 and not 1901, and that we should be able to get a decision faster. It’s archaic and it’s put the country in limbo, not to mention alone the effect it is having on commercial property markets in Canberra. Plenty of private and institutional investors are questioning why it’s taking so long to get a result in this age of technology.

He added in September last year, office vacancy rates in Canberra were sitting at around 15 percent with strong indications leading up to the election that the Canberra office vacancy rate had fallen to around 12 percent.