Steady office market vacancy figures released today show South Australian businesses in a ‘holding pattern’ as they balance their concerns for international economic conditions against mounting confidence in an Olympic Dam-inspired boom.
Office Market Report figures released by the Property Council show the vacancy rate in the CBD office market* (see below) fell by 0.1 percentage points to 7.7 percent, a low figure in historical terms.
Property Council of Australia South Australia Executive Director Nathan Paine says while demand for space had softened, longer-term indicators were far more positive.
“Local businesses are in a holding pattern as they are understandably nervous about the medium- to long-term impact of global economic factors, particularly the European debt crisis, but there are still signs that people are looking to invest,” he says.
“They’re not taking up office space right now, but on the flipside there is a significant amount of office stock set to come on-stream over the next two years, and more still is mooted. That says a lot about the expectations for economic growth in coming years.”
“Coupled with the results of the most recent Property Council/ANZ Property Industry Confidence Survey, this seems to indicate that businesses are holding back on their decisions to fill out Adelaide office cubicles until the boom times appear even closer, but the investment dollars are ready to go.”
The Property Council, with ANZ, recently released results of a property industry survey that showed confidence in South Australia surged on the announcement of the indenture agreement between the South Australian Government and BHP Billiton.
Mr Paine says the property sector’s long-term confidence was a very positive sign as it proved investors were willing to bet with capital that the Olympic Dam project would have a transformative impact on the South Australian economy.
“With long-term confidence looking strong, and investments in CBD construction in the pipeline, we’re entitled to look on today’s announcement with a ‘glass half full’ outlook,” Mr Paine says.
For more information or interviews please contact: Nathan Paine, Executive Director, Property Council of Australia (SA Division) 0448 445 177
For more information on the Property Council / ANZ Property Industry Confidence Survey please go to www.propertyoz.com.au/confidence.
For full analysis and coverage, visit the dedicated website: www.officemarketreport.com.au