The Global Financial Crisis continued to wreak havoc through 2009 on office market activity with value of stock and leasing activity falling away and analysts left comparing the financial meltdown to the recessions of 1991 and 1975 and subsequent vacancy blowouts. Yet Australia and Asia Pacific in general are experiencing a sharper than expected financial recovery.
- Melbourne performed well, against increasing office supply with Docklands continuing as the standout performer – vacancy levels dropped from 3.7 to 2.3% between July 2009 and January 2010. Melbourne CBD vacancy levels rose from 4.8% to 6.6% - caused mostly by 135,000 square metres of office space entering the market. In contrast, St Kilda Road and Southbank both experienced rises into double digit vacancy levels.
- The majority of New South Wales’ markets recorded increasing vacancy levels, including Sydney CBD (minor rise from 7.8 to 8.1%), North Shore (13.7%), North Ryde (12.3%), Parramatta (9.8%) and Newscastle (14.5%).
- Brisbane CBD increased from 10.7 to 11.3% over the previous six months due to increased supply outstripping the strong demand. Suburban Brisbane vacancy was stable (11.6%) compared to Gold Coast (22.4%). Sunshine coast demand performed well despite increased supply causing vacancy to rise to 16.3%.
- Canberra was the only CBD market to record a drop in vacancy (from 9.0 to 8.7%).
- Perth recorded a minor increase in vacancy from 8.0 to 8.2% due to supply additions
- Adelaide 6 monthly vacancy levels rose from 5.5 to 6.1% mostly due to vacancy exceeding absorption
- Hobart, despite a rise of 0.9%, has the lowest vacancy levels of all CBD markets at 3.7%