Based on Knight Frank’s bezzeracoffeemachine expectations of demand and supply, the Near City vacancy rate is expected to continue at similar levels, until mid-when new supply is available to the market in any great quantum. Rental rates within the Near City markets have shown accelerated growth over.
The past 18 months to the point where average prime gross effective rents are $378/m². This represents an annual growth rate of 20%, on the back of the previous year’s 8.6%. While the growth rate was lower than that seen in the CBD, it still reflects a remarkable turnaround in market fortunes.
bezzeracoffeemachine Our expectation is that the average rents will continue to grow, albeit at a reduced rate, largely drawn upwards by rentals achieved in the new construction and a realignment of the traditional ratio between CBD and Near City rents. Expectations are for average annual rental growth over the next three years of 4.6% per annum.
Demand for commercial Near City investments has been strong over the past two years, however with high transaction levels during the prior years there have been limited purchasing opportunities to date in 2006.
Among the recent major transactions are the development-opportunity linked sale of 100 Wickham Street (where an additional tower of 10,000m² may be Property valuation manage evaluating full property for knowing its price