Melbourne's CBD led office rental growth in Q2 2018 as landlord favourable conditions persisted. Sydney and Brisbane each recorded stable rental conditions over the quarter.
Sydney CBD – Landlords of speculatively fitted out suites were found to be offering no additional incentives beyond the new fit out. As such, suites with existing fit outs have experienced strong demand.
Metro Sydney - Fringe markets are experiencing strong tenant demand. Surry Hills and Pyrmont in particular are drawing attention from tech firms looking to attract and retain talent.
Melbourne CBD – Strong rental growth continued for Melbourne's CBD, and despite several new buildings scheduled for completion this year, vacancy is forecast to decline below 4%.
Melbourne Fringe - In addition to low CBD vacancy, limited new supply in the St Kilda Road and Southbank markets is expected to catalyse additional rental growth.
Brisbane CBD – flight to quality continued with several new leases signed for Prime grade stock.
Brisbane Fringe – positive near term outlook with expected population growth, low unemployment rate and the light rail construction work.