Healthy demand for office space across Brisbane has seen vacancy rates fall over the first half of 2019.
The Property Council of Australia’s latest Office Market Report, released today, shows that vacancy across the CBD has dropped from 12.9% to 11.9% over the last six months. Vacancy in the Brisbane Fringe fell from 15.7% to 13.8% over the same period.
“The improvement in the vacancy rate is welcome and confirms that Brisbane’s office market is recovering from recent record high vacancy rates,” Queensland Executive Director of the Property Council, Chris Mountford, said.
“Brisbane CBD is now at its lowest level of vacancy since July 2013, with strong demand recorded for Premium and B Grade stock.
“While there has been some office buildings withdrawn from the market for redevelopment, new demand is playing a big role in bringing down the vacancy rate.
“The Brisbane Fringe, in particular, has experienced a significant increase in demand over the first half of this year, with A Grade stock being the most sought after in this market.
“The Brisbane office market is clearly in the midst of a good recovery, with confidence that demand will continue to grow and strong investment underway in new office projects.
“Unfortunately, the Government’s decision to dramatically increase land tax in the recent State Budget sends the wrong message at the wrong time.
“Overseas investors play a critical role in the development of new office projects in Brisbane.
“Targeting these investors with astronomical tax increases will only result in higher rents for Queensland businesses, and a slowing of the Brisbane market’s momentum,” Mr Mountford said.
The Property Council is engaging with the Queensland Government to influence the final structure of the new 2% foreign land tax surcharge.
To view select Office Market Report data series, visit the Property Council’s Data Room