Demand slows on North Shore

The Property Council of Australia’s latest Office Market Report released today shows that the aggregate vacancy rate across all North Shore markets has increased from 7.9 to 8.4 per cent in the six months to January largely due to negative demand.

North Sydney saw an increase in vacancy rate from 6.4 to 7.9 per cent over the period, while Crows Nest/St Leonards recorded a considerable drop and Chatswood vacancy marginally declined.

“North Sydney saw a weaker result due to -10,883sqm of net absorption and 2,148sqm of supply additions, along with the closure of NBN headquarters in the area,” Property Council NSW Executive Director Jane Fitzgerald said today.

Key market indicators, North Shore (aggregate)

“There was a drop in vacancy in Crows Nest/St Leonards from 12.6 per cent to 11.1 per cent due to 8,111sqm of withdrawals.

“Chatswood saw vacancy decrease slightly in the six months to January 2018 from 6.9 per cent to 6.8 per cent due to 281sqm of net absorption

“Some new supply is on its way across North Shore markets with 46,200sqm due to be completed in 2019. This will be followed by 45,720sqm from 2020 onwards.

“The investment in Sydney Metro Northwest will improve connectivity for the North Shore markets and we are largely seeing positive signs.”

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