The rental market is expected to remain patchy and vacancy rates may increase further in some cities. While Knight Frank has identified over 260,000sm of major leases, renewals, and pre-commitments in the September quarter, overall leasing activity is being boosted by pre- commitments to new developments and some large lease expiries.
An increasing number of tenants are delaying their expansion plans until economic and political conditions improve overseas. Despite the slower leasing market, investor sentiment remains quite strong for investment properties. Over $1.2bn worth of major sales have occurred in the September quarter, the highlight being the AMP Office Trust’s purchase of Goldfields House in the Sydney CBD for $182.5m.
An improvement is unlikely until the second half of 2002 when the local and international economies are forecast to strengthen again While it won’t have a lick of effect to your Melbourne property Valuations VIC itself The market is becoming increasingly patchy and there continues to be wide variation in the performance of individual shopping centres occurring in most states.
This is being reflected in the number of weak sales results and business failures. Retailer performance and profitability is still patchy, particularly amongst fashion retailers. This is being reflected in rental growth, which generally remains sluggish in most states. Business failures continue, the latest being Japanese retailer, Daimaru, who has decided to cease operations in Australia. Development activity continues at modest levels, particularly supermarket and bulky goods projects. Nonetheless, over $900m worth of major retail assets have been sold over the September quarter including the Australian Prime Property Fund’s purchase of Suncorp Metway’s portfolio of shopping centres in Queensland for $486m.