Cushman & Wakefield is pleased to present its latest Australia Property insight "Central Sydney Planning Strategy: Commercial property impact".
This report reviews some of the key proposals and their potential impact on commercial property.
- The new strategy should nearly triple the amount of floor space that can be added to the CBD before capacity is reached and allow office stock to increase by over 50%.
- This should provide for jobs growth of around 100,000 over the next 20 years, up from 50,000, and help continue the Sydney CBD’s role as a key driver of economic growth.
- Ongoing economic growth should help support property valuations, with the sites best able to leverage the additional height gaining the most uplift. This is likely to lead to higher statutory valuations with a flow on to certain rates and land taxes.
- Whilst the current supply pipeline suggests the office rental market will favour landlords for the next four to five years, the potential uplift to development size combined with a period of above average rental growth over the next few years could result in a relatively large wave of new office supply and downward pressure on rental growth after 2021.
Download the report to find out more details regarding the potential impact on commercial property.
National Director, Research
+61 466 387 016