This article is from the Australian Property Journal archive
For the first time this year, the Property Council has included the Launceston office market in its bi-annual Office Market Report.
Brothers Newton, valuers and property consultants, conducted the survey which revealed that Launceston has 55,098 sqm of office space in the CBD, of which 2,260 sqm or 4.1% was vacant as at January 01, 2007.
Brothers Newton’s Scott Newton, 4.1% was quite a respectable level and comfortably below the non CBD national average of 7.3%.
“Property is experiencing somewhat of a boom in most cities. Apart from Perth, Hobart shares the lowest vacancy level across all grades which is a positive indicator for additional investment and development over the ensuing 12 to 18 months.
“Whilst office space in Hobart is six times greater than Launceston, it is still a significant driver to investment and economic growth in the northern region,” he added.
Meanwhile, Hobart continues to have one of the lowest vacancy rates of any office market in Australia.
Hobart’s total vacancy level was 1.9% (6,567 sqm), a record low and well under the Australian CBD vacancy of 5.6%.
Newton said there had been an additional supply of 4,966 sqm during 2006, but absorption was 7,534 sqm, causing the decline in vacancy.
“It is clear that supply is not keeping up with demand which is a positive indicator for additional investment in the local market but not before further tightening in the market occurs during 2007.
“The fact that vacancies are spread across all grades, there is no prospect of any additional large tenant entering the market without constructing new stock,” he added.
“There will be an additional 4,000 sqm becoming available during 2007, however no further stock is due to enter the market in the medium to long term,” Newton concluded.
Australian Property Journal
