Dexus Research today released the Australian Real Estate Quarterly Review Q1 2020, which provides an outlook for Australia’s main property markets.
Peter Studley, Dexus Head of Research, said: “While issues such as the Australian bushfires and Coronavirus have increased uncertainty about the broader economic outlook, there are reasons to be positive about the white-collar industries which underpin demand for office space.”
Conditions in the Finance and Business Services industries are much more positive than in many other sectors, including retail and construction.
In the November 2019 NAB monthly survey of business conditions, the Finance and Business Services industries recorded a positive score of 12 compared to an all-industry average of just 3. The higher score represents better conditions for trading, profitability and employment.
This relative performance was also reflected in recent employment data which showed 99,800 jobs were created across the Finance and Business Services industries in the year to November 2019.
The Business Services industry is growing faster than the rest of the economy. In the year to September 2019, output growth in the Business Services industry was a credible 3.4% compared to the all-industry average of 1.8%.
Peter Studley said: “These industries are traditionally big users of office space, with the Finance and Business Services industries occupying approximately 41% of the floor area in Sydney CBD.
“The growth story for office occupiers may be brighter than the headline economic data implies.”
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