Archives for December 2010

Retail Property Facing Challenges

Retail challenges.

Having weathered the recent rate increases, consumer confidence seems to have risen just a measly 0.3% during November — according to the latest Westpac/Melbourne Institute consumer sentiment index.

Households still appear to prefer paying down debt, rather than spending — with Australia’s saving level hovering around a record 10.5% of its disposable income.
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Office Leasing the Stand-out Performer

Office leasing activity picked up in most capital cities around Australia, over the past year. In some instances, quite significantly.

And with the supply side basically “on hold”, you should soon start to see this translate into some solid rental increases.
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September Growth Figures
Just a Pothole in the Road

Growth will continue.

Growth will continue.

Relax, it hasn’t all come to an end.

Sure, the Australian economy may have grown by only 0.2% in the September quarter. And retail sales might have actually fallen by 1.1% for October.

However, the overwhelming consensus is that this is merely an aberration.

And the underlying growth projections remain very favourable — with the full effect of the mining boom having resumed, due to be felt by mid-2011.
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Melbourne Leads the Office Market

Savills International has just released a report on the current level of Office supply within the Melbourne CBD.

 Melbourne CBD Office Vacancies

Melbourne CBD Office Vacancies

Strong demand has seen the number of floors of Prime space within the CBD fall from 60 at the end of January this year, down to 42 at present — a decline of some 30%.

The amount of Secondary Office space has also fallen from 108 floors to 89, over the same period.

And underpinning all of this is the level of enquiry, which has jumped by 300% over the last six months.