Office market gets confidence boost
CONFIDENCE in the Townsville office market is starting to move with a pick- up in overall business confidence, according to Herron Todd White.
In its July Month in Review, the property consultant says the entry level office sales market is driven by affordability and priced in the sub$ 500,000 bracket.
Prices start at around $ 350,000 for converted dwelling properties in secondary suburban locations.
The report says there are some small strata professional offices priced in the sub$ 500,000 range but that generally there is limited stock offered to the market.
Most activity in this sector comes from owner- occupiers.
In Cairns, the office market is relatively shallow and experiences limited sales activity.
The market has also experienced limited new develop- ment. The last large office building constructed in Cairns was the State Government office tower completed in 2010 with no apparent new developments in the pipeline.
“Commercial property sales in Cairns, inclusive of retail and commercial office premises, remain well below the peak levels achieved in the 2005 to 2007 period,” the report said.
“Nevertheless the market has been slowly rebuilding in sales volume since 2010.”
The report said prices paid for strata- titled premises had been relatively stable since 2010 at around $ 2500 to $ 3000 per square metre of floor area.
Most new office space leasing demand is for smaller areas and for modern, good- quality green star- rated premises.
These buildings achieve high levels of occupancy and stable rent levels.