Confidence holds

Hobart’s CBD office market vacancy rate has remained steady at 8.2 per cent, according to the Property Council of Australia’s Office Market Report (OMR).

However, in a promising result demand for Hobart Office Space was considered positive with 1,325 sqm net absorption recorded.

Executive Director, Brian Wightman noted the steady result while welcoming an increase in demand.

“The Hobart office vacancy rate is the third lowest in the country behind the Sydney and Melbourne markets.

“Increased demand for office space is a welcome sign and presents further opportunity to embark on reforms which will deliver a generation of continuous economic growth.

“Property and construction is driving a boom period in Hobart’s economy,” he offered.

The Property Council acknowledged the recent reforms of the State Government including the passing of the Tasmanian Planning Scheme through both Houses of Parliament, the Building Act Amendments, and a focus on red-tape reduction.

But the Division encouraged the State Government to elevate the focus on the Population Growth Strategy off the back of recent CommSec State of the States improvement which was driven by population growth.

“Tasmania moved to fourth overall across the eight indicators. Population growth has driven the improvement and it is now time for the State Government to both resource and elevate the community conversation regarding the 650,000 by 2050 Population Growth target,” he said.

The Property Council also recognised the importance of the office component of the Parliament Square Development nearing completion and coming on line in in 2017.

“During 2017, 19,290 sqm of office space is due to come on line, much of which is Parliament Square.

“The construction jobs, building activity, public open space, and investment delivered by the Parliament Square project are incredibly welcome.

“Over the last 12-18 months a number of older office buildings have been purchased for a change of use. This trend looks set to continue in 2017 with ongoing interest in the Hobart commercial property market,” he said.

For more information or to purchase the January 201Office Market Report, click here.

Media contact: Brian Wightman  |  E bwightman@propertycouncil.com.au