OFFICE space vacancy levels in Hobart have risen slightly over the last year, but remain the lowest of the Australian CBD markets according to figures released today by the Tasmanian Division of the Property Council of Australia.
The annual Office Market Report compares office vacancy levels throughout the nation’s capital cities, and shows the state’s capital having a 3.7 per cent vacancy rate, compared with 6.6 per cent in Melbourne, 8.1 per cent in Sydney and 8.7 per cent in Canberra as at 1 January 2010.
Richard Carhart of Brothers and Newton – Opteon Valuers said the highest office vacancy levels were in Brisbane at 11.3 per cent, while Perth was at 8.2 per cent, Darwin 8.4 per cent and Adelaide at 6.1 per cent.
“All states except Canberra reported an increase in vacancy levels over the last 6 months, and for Hobart the increase was 0.9 per cent to 3.7 per cent in 12 months across all office grades which is modest in comparison to the rest of the nation,” Mr Carhart said.
“This is encouraging for the Hobart market given the economic upheaval that has gone on over the past year, and is particularly notable for the significant decrease in the amount of ‘A’ grade accommodation available over the survey period.”
Tasmanian Executive Director of the Property Council, Mary Massina said the 2009 survey revealed a trend away from ‘A’ grade property but this appears to have reversed, probably due to increasing confidence returning to the local market with vacancy levels falling from 3.5 per cent in 2009 down to 2.5 per cent in 2010.
“For the lower grades of accommodation, there were increases in vacancy rates of 2.4 per cent for ‘B’ grade to 5.4 per cent, 3.3 per cent for ‘C’ grade to 5.2 per cent and 1.1 per cent for ‘D’ grade to 2.3 per cent but given that the market has been so tight in recent times this was not of concern,” Ms Massina said.
During the last year, the total amount of additional office space entering the Hobart market was 5,371 square metres, with this year predicted to bring another 3,300 square metres, with a further 6,475 square metres mooted.
“Over the last 12 months the market absorbed about 370 square metres of additional space, so at this rate there will need to be a further increase in economic activity to maintain vacancy rates at this level,” Ms Massina said.
Ms Massina said given it was an election year, one of the ways in which our political leaders could ensure the office market is more stable into the future would be to commit to a metropolitan plan for greater Hobart.
“The Office Market Report has reinforced the need for a metropolitan plan as it would give developers more clarity and consistency when looking at potential developments, Ms Massina said.
“It would also mean that the peaks and troughs of the market could be smoothed out, ensuring a more consistent market place.”
