Upswing in demand makes Sydney office market attractive
Investors who buy into Sydney’s CBD office market now can expect solid yields going forward with a surge in demand for space in the city forecast for 2016, according to BIS Shrapnel’s latest Sydney Commercial Property 2014 - 2024 report.
NSW capital, BIS Shrapnel analysts said the current environment represented an opportunity for investors to access the market before demand for office space in Sydney heats up again in two years.
“After 2016 the market is set for a strong recovery that is expected to continue into next decade,” BIS Shrapnel said.
“That means the next two years offers the opportunity to position into what will be a strong upswing.”
The report found that competition for tenants in the Sydney CBD market had seen leasing incentives edge higher, causing a modest fall in rents.
BIS Shrapnel analysts said cost cutting measures and staff cuts in the services sector had played a significant role in driving up vacancy rates across in the Sydney market.
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
