Perth Property set for a Swan Dive?

Recently the Australian Financial Review reported that office vacancy was rising and rents were under pressure in most markets Australia. The broad issue is that both public and private tenants are scaling back their office space requirements. In fact in the first quarter of this year ‘net absorption’, a measure of the change in total square metres being leased, was actually negative, meaning tenants now occupy less overall space than at the start of the year. We’ve been bearish on the property market in Australia for some time, and don’t have any exposure to the office sector, so we’re...

Recently the Australian Financial Review reported that office vacancy was rising and rents were under pressure in most markets Australia. The broad issue is that both public and private tenants are scaling back their office space requirements. In fact in the first quarter of this year ‘net absorption’, a measure of the change in total square metres being leased, was actually negative, meaning tenants now occupy less overall space than at the start of the year.

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