Office market in Canberra looks strong for 2020

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Colliers International has predicted the ACT office market for 2020 will mirror the strong performance of 2019, with low vacancy rates in Canberra’s CBD and the Parliamentary precinct. File image.

Colliers International has predicted 2020 to be a strong year for the ACT’s office market. Canberra has become “one of the most highly sought after office markets in the country”.

“As we usher in the New Year, we are forecasting exceptionally strong demand during 2020, building on the significant sales achieved in 2019,” said Colliers International director capital markets and investment services, Matthew Winter.

“There is a huge amount of capital searching the globe for investments with yield and income growth potential. Canberra’s strong economic conditions are attracting investors to the Territory and we expect this will positively influence competition for assets and potential sale prices.”

He said office vacancy rates are already low in Canberra’s CBD and the Parliamentary precinct. With these expected to tighten further across the city this year: “there is an estimated 160,000sqm of new office accommodation requirements currently in the market”.

Mr Winter said during 2019, middle market sales (those between $10 million and $100 million) totalled $468,020,000.

“For the total market, there were 11 major sales amounting to $724 million – well ahead of the nine sales in 2018 amounting to $272.5 million. This upward trend is forecast to continue.”

 

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