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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The vision for South Bank 2.0 is crystallising as negotiations progress for a riverfront industrial site in Brisbane’s inner-city suburb of West End.</p><p>Speaking at the Property Council of Australia Queensland lunch, Brisbane Lord Mayor Adrian Schrinner confirmed the council’s offer had been “well received” and <a href="https://www.theurbandeveloper.com/articles/brisbane-olympic-development-unveiled-for-southbank">negotiations were progressing for the 7ha site at 137 Montague Road</a>. </p><p>The site has been slated for the temporary international broadcast centre as part of the Brisbane 2032 Olympic Games. </p><p>Currently an industrial site for Visy Glass works, the buildings would be demolished, site remediation would be carried out and a power substation built for the temporary 57,000sq m international broadcast centre.</p><p>“It’s the perfect way to add to what was created at South Bank for Expo ‘88—this is going to be South Bank 2.0,” Schrinner said.</p><p>“The offer for the Visy Glass factory site has been well received and we are progressing through those negotiations now.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/4a0c42cd-18e6-4cc3-b2ac-a4838f67980b.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ A 7ha site on Montague Road at West End is part of plans for Brisbane&#x27;s 2032 Olympic Games and the extension of South Bank.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>According to the Future Host Commission Report, the land could be compulsorily acquired with fair compensation, and site preparation would require capital investment from the state government.</p><p>Under the plan, the factories along Montague Road at West End would likely move from their waterfront site over the next five years to make way for the temporary Olympic infrastructure, and ultimately an extension of public parkland. </p><p>“Everyone wants to get cracking on the Olympic opportunities and there’s a lot of work to be done … we want to measure twice and cut once, it’s neither a sprint nor a marathon,” Schrinner said.</p><p>Schrinner said the focus was on <a href="https://www.theurbandeveloper.com/articles/olympic-games-brisbane-property">building the right infrastructure and legacy for the city</a> and south-east Queensland beyond the Games.</p><p>The International Broadcast Centre would be within walking distance of five Olympic sporting venues and a shuttle bus would operate between the broadcast centre and the media centre at the Brisbane Convention and Exhibition Centre. </p><p>It would align with the council&#x27;s draft Kurilpa Riverfront Renewal Masterplan, which aims to unlock riverfront land in the industrial area of West End.</p><p>Lord Mayor Adrian Schrinner said the council had committed to deliver a new multi-use parkland on the 7ha site.</p><p>“Negotiations with the owner of the industrial business on the site continue positively,” Schrinner said.</p><p>“As soon as we can reveal more, we will ... we’re looking forward to sharing our vision for South Bank 2.0 and delivering this lasting legacy for residents and visitors to our great city.”</p><p>At the heart of Brisbane’s Olympic Games is the $1-billion redevelopment of The Gabba as the main stadium to <a href="https://www.theurbandeveloper.com/articles/brisbane-olympics-2032-development-infrastructure-projects">host the Opening Ceremony and the athletics</a>. </p><p>The Brisbane Arena will be built near Roma Street Parklands with a capacity of 15,000 people, and will host the swimming and water polo, while Ballymore would be rebuilt to host hockey matches, and a new indoor arena has been slated for Albion. </p></div></div></div></div></div>

The vision for South Bank 2.0 is crystallising as negotiations progress for a riverfront industrial site in Brisbane’s inner-city...

High Confidence

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Confidence across Australia’s property industry has surged to record highs despite a Property Council of Australia and ANZ survey revealing expectations for New South Wales house prices are the worst in the survey’s history. </strong></p><p>While the NSW property industry confidence index rose slightly to 141 index points, up from 140 points last quarter, sentiment has dropped four index points. </p><p>The broader industry was buoyed by a range of positive sentiment – for economic growth, improving value in the office and industrial property markets and confidence in a growing retirement living sector.  </p><p>Related reading: <a href="https://theurbandeveloper.com/articles/sydney-still-the-most-expensive-rental-market-despite-weakening-growth-">Sydney Still the Most Expensive Rental Market Despite Weakening Growth</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/4e6ef83d-c2b5-4537-a5db-7f7e7167ab3c.jpg" width="981"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Property Council chief executive Ken Morrison said the survey results, which polled more than 1000 property industry professionals nationwide, were a “cause for optimism”.</p><p>The national confidence index for the June quarter lifted four points to 143, the highest score since the survey began in 2011. A score of 100 is considered neutral.</p><p>“Hotel and Industrial sector capital growth expectations are leading the nation and these sectors, along with retirement, are now where we are seeing higher expectations of growth,” Morrison said.</p><p>Related reading: <a href="https://theurbandeveloper.com/articles/sydney-land-prices-fall-for-the-first-time-in-two-years">Sydney Land Prices Fall for the First Time in Two Years</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/3ede6eda-03f5-4065-ac1e-39806e41a6e8.jpg" width="620"/></picture><div><span style="align-content:center;opacity:0.8">Ken Morrison says</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Getting the policy settings right for the property industry, explained Morrison, such as better planning and cutting red tape would boost confidence which in turn drives investment, expenditure and employment.</p><p>“Now that we are in the midst of an election year, the upcoming Budget will be important to send a message to the industry. As other east coast states compete for investment, a stable, open investment environment is required in NSW to ensure our good economic fortunes continue.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Funding Challenges a Hurdle for Development Projects</strong></p><p>Separate research from NAB reveals developers are putting project plans on hold as sentiments around funding remains lacklustre. </p><p>Accessing funds, for both debt and equity needed for developers’ property businesses is still a major challenge but less so than in the last quarter of 2017, according to the latest NAB Commercial Property Index. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/80545c52-0c59-4dcd-b25d-73b5e7b61ff5.jpg" width="724"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Australia-wide, the number of surveyed property developers who said they were aiming to commence new building works in the next six months increased to 49 per cent, up from 47 per cent in the last quarter of 2017. </p><p>“Fewer property developers are looking to use land-banked stock for their new projects and an increasing number are also seeking new acquisitions, pointing to a period of stock rebuild,” the report said.</p><p>Many survey participants expect their debt funding and equity conditions to worsen over the next six to twelve months. </p><p>Related reading: <a href="https://theurbandeveloper.com/articles/retail-property-sentiment-takes-sharp-dive-">Retail Property Sentiment Takes Sharp Dive</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/753af2ca-7992-4dbb-b41d-dcc686e2a6e8.jpg" width="741"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>By segment, confidence in the commercial property market is up as property experts in all states, except Queensland, believe in a buoyant market across the next one to two years. NSW and VIC were the most optimistic and WA, while the largest improver, was the least confident. </p><p>Meanwhile CBD hotels continues to outperform on the back of growing tourism and favourable global economic conditions. </p><p>The NAB Commercial Property Index, which surveyed about 300 property professionals, rose by four points in the first quarter of 2018, higher than its long-term average of a rise of three points.</p></div></div></div></div></div>

Confidence across Australia’s property industry has surged to record highs.

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Social distancing has had a larger impact on construction schedules than the shock to <a href="https://theurbandeveloper.com/articles/coronavirus-construction-supply-chain-impact">supply chains</a> or site access, with construction sites largely staying open during Covid-19 lock downs.</p><p>Intense lobbying from property industry groups and unions kept construction sites open nationally over March and April as the attention of the sector moved to easing <a href="https://theurbandeveloper.com/articles/construction-industry-further-stimulus-liquidated-damages-coronavirus">restrictions</a> and government <a href="https://theurbandeveloper.com/articles/construction-sector-coronavirus-jobs">stimulus</a>. </p><p>A survey of Property Council members revealed that the impact of public health measures was the leading contributor to construction delays, with 46 per cent responding that their projects had mostly remained on schedule.</p><p>Property Council chief executive Ken Morrison said that developers and builders had been amicable for the most part.   </p><p>“Most parties have demonstrated their preparedness to work together without resort to formal dispute resolution tools,” Morrison said.</p><p>The peak body for quantity surveyors said that the survey showed the industry is proactively collaborating and avoiding formal disputes. </p><p>“Our members are aware that some builders have submitted notices of potential delay that don’t seem to be developing into actual claims,” Austalian Instiute of Quantity Surveyors chief executive Grant Warner said. </p><p>“However, if Covid-related restrictions don’t lift soon and if the market contracts further this may well change as developers and builders become more contractual to protect their position.” </p><p>Related: <a href="https://theurbandeveloper.com/articles/home-sales-unemployment-house-prices">Home Sales Fall as 600,000 Jobs Lost</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/9b2f0bd9-2187-4944-8901-19df5dc161da.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ The second known coronavirus case on a construction site was confirmed at Melbourne Square in March.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The latest new <a href="https://theurbandeveloper.com/articles/home-sales-unemployment-house-prices">home sales</a> <a href="https://theurbandeveloper.com/articles/home-sales-unemployment-house-prices">index</a> from the Housing Industry Association revealed that falling sales had pushed project cancellations to more than 30 per cent—four times the typical rate. </p><p>“In net terms, this equates to a contraction of more than 50 per cent in the volume of new building work, [which] will be felt in the second half of 2020,” HIA chief economist Tim Reardon said.</p><p>In April, industry body Master Builders <a href="https://theurbandeveloper.com/articles/construction-sector-coronavirus-jobs">warned</a> that the worst is yet to come, as future work indicators fell by up to 40 per cent. Housing starts are expected to <a href="https://theurbandeveloper.com/articles/coronavirus-home-sales-set-to-halve-in-near-term-">dip below</a> 100,000 in coming quarters, falling to levels last seen in the 1960s. </p><p>Reardon said Covid-19 has further compounded a slowdown which has been under way since mid-2018. </p><p>“The volume of home building under way at the end of March was already 18 per cent lower than in mid-2018.</p><p>“Even the removal of all Covid-19 restrictions will not prevent a material deterioration in work and employment in the home building sector in the second half of 2020 and into 2021.”</p></div></div></div></div></div>

Social distancing has had a larger impact on construction schedules than the shock to supply chains or site access.

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="ci cl"><p><strong>After five years of decline, North Shore office stock is again on the rise with Sydney CBD&#x27;s strong leasing market spilling over to buoy the area.</strong></p><p>Office markets in Sydney’s North Shore comprise the out-performing suburbs of North Sydney and Macquarie Park, in addition to the smaller hybrid markets of Chatswood, and Crows Nest-St Leonards.</p><p>Collectively they amount to roughly 45 per cent the size of the Sydney CBD.</p><p>Global real estate group Cushman &amp; Wakefield&#x27;s latest report on Sydney&#x27;s North Shore Office Markets identifies a precinct &quot;rejuvenation&quot; is under way in North Sydney, led by the development of new office towers at <a href="https://theurbandeveloper.com/articles/denison-street-developments-creative-future-left-imagination">1 Denison Stree</a><a href="https://theurbandeveloper.com/articles/denison-street-developments-creative-future-left-imagination">t</a> and <a href="https://theurbandeveloper.com/articles/nbn-co-100-mount-north-sydney-dexus">100 Mount Street </a>– both of which are well-positioned to benefit from the addition of Victoria Cross Station and the Sydney Metro in 2024. </p><p>[Related reading: <a href="https://www.theurbandeveloper.com/articles/chatswood-colliers-office-leasing">North Shore Offices in High Demand</a>]</p><p>Over the long term this transport infrastructure is expected to make the North Shore both more accessible and more attractive to prospective tenants. </p><p>Despite increasing accessibility, the withdrawal of secondary grade stock continued as residential developers looked to take advantage of Sydney’s booming housing market. </p><p>The smaller markets of Chatswood and Crows Nest-St Leonards now face somewhat of an identity crisis with an increased residential presence. On the other hand, Cushman and Wakefield point out that the quality of office stock, particularly in North Sydney, is improving rapidly. </p><p>The report found that in North Sydney, current prime grade net face rents are circa $690 per square metre, with gross incentives around 25 per cent. </p><p>The Crows Nest-St Leonards precinct is slightly more expensive at $550 per square metre compared to Chatswood’s $505 per square metre. Both have average gross incentives of circa 23 per cent. In Macquarie Park, prime grade net face rents are circa $360 per square metre, with net incentives circa 25 per cent.</p><p>The Property Council of Australia in July 2017 reported Macquarie Park vacancy rate increased 140 basis points to 8.5 per cent over the past year, although it remains significantly below the 11.2 per cent recorded in mid-2014.</p><p>On the investment front, the North Shore markets attracted strong activity with numerous assets exchanging over the year. In the second and third quarters there was an increase in assets for sale, contributing to $1.62 billion in sales volume. </p><p>[Related reading: <a href="https://www.theurbandeveloper.com/articles/centuria-purchase-nsw-office-assets">Centuria Fund Spends $200m on NSW Office Assets</a>]</p><p>Yield spreads between prime and secondary grade stock compressed over the year as residential developers made plays to acquire sites with development upside. </p><p>Cushman &amp; Wakefield anticipate that Sydney metropolitan sales volumes will remain strong over the next 12 months as yield compression continues, albeit at a slower rate. </p><p>The report flags strong demand from domestic and other foreign investors, all operating in a long-term low interest rate environment.</p></div></div></div>

Coronavirus ‘Seriously Impacting’ 15pc of Development Projects

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The coronavirus pandemic has continued to stifle the property industry with investor sentiment sinking to levels last seen just after the global financial crisis a decade ago, according to the latest ANZ-Property Council Survey.</p><p>The survey, based on the sentiment of industry professionals in the last two weeks of March, saw confidence fall to record lows—plunging from 123 index points to 62 for the quarter. A score of 100 on the index scale is considered neutral.</p><p>Two-thirds of survey respondents said the crisis was already impacting on their businesses, with 35 per cent reporting a serious impact and 9 out of 10 respondents expecting economic conditions to worsen over the next three months.</p><p>Sentiment across the residential, office, industrial and retail have all been sharply impacted yet 75 per cent of respondents believe the accommodation sector will continue to be the most severely impacted.</p><p>Sentiment for Australian hotel capital growth expectations decreased by 91 index points to a record low of -81 index points with construction activity within the accommodation sector sitting at -20 index points, closely followed by the <a href="https://theurbandeveloper.com/articles/coronavirus-continues-to-ravage-retail-as-major-landlords-withdraw-guidance">retail sector</a> at -19 index points.</p><p>Currently the limited retail development taking place is skewed toward supermarket-anchored neighbourhood centres, with the latest virus-related retail boost being spurred on by consumer <a href="https://theurbandeveloper.com/articles/discretionary-retail-hurts-as-stockpiling-benefits-supermarkets-">panic buying</a>.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/72be5556-70d6-4839-864b-f2865adaf900.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ The online survey gauges the sentiment of 918 property developers, managers and agents and service providers between 16 March and 31 March.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Residential capital growth sentiment decreasing from 35 to -23 index points while office capital growth expectations fell 54 index points to a record low of -36 index points over the quarter.</p><p>Despite decreasing sentiment, the industrial sector and the retirement living sector remain in positive territory recording 7 and 8 index points respectively.</p><p>Industrial property, seen as a more defensive play aligned with the growing reliance on ecommerce and last-mile delivery, was seen as the sector least susceptible to the impacts of the virus with 1 per cent of respondents nothing it would be severely impacted.</p><p>Despite numerous stimulus measures enacted by the federal government, outlooks for new staffing and workbooks over the next 12 months dropped to their lowest since the quarterly survey began in late 2011.</p><p>Property Council of Australia chief executive Ken Morrison said the results were troubling given the importance of the property industry to the Australian economy.</p><p>“Property is a big driver of employment and economic activity, and the plunge in expectations for these key drivers highlights the critical importance of government action that supports the industry now and into the future.”</p><p>Despite uncertainty around the sector, construction has pressed ahead with sites across the country adhering to social distancing measures, by staggering shifts, splitting up break times and locations, in an attempt to try to keep projects on schedule.</p><p>While two-thirds of respondents said their construction schedules had experienced a “moderate” but manageable impact, possibly due to supply chain issues, the proportion reporting a ”serious” impact was at this point 15 per cent.</p><p>ANZ senior economist Felicity Emmett said that across all sectors, price expectations contracted sharply in hand with deteriorating  employment prospects, causing a turn down in construction outlook.</p><p>“With long lags associated with construction approvals, commencements and completions, a quick rebound once the lockdown is eased seems unlikely,” Emmett said.</p><p>“The construction sector is not subject to a shut-down at present, but the downturn in the outlook is concerning, and suggests that the impact of the virus may be more long lasting on the property sector.”</p></div></div></div></div></div>

  The coronavirus pandemic has continued to stifle the property industry with investor sentiment sinking to levels last seen just after the GFC.

As CBD office vacancy hits a 24 year in a PCA report high there is light at the end of the tunnel with demand indicators improving dramatically according to Dexus

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The negative trend in demand needs to be turned around in order to support new commercial space coming on the market according to the Property Council of Australia’s office market report.</p><p>Despite relative “insulation” from the pandemic, all CBD markets recorded an increase in vacancy except for Canberra.</p><p>This has pushed office vacancy to its highest level in 24 years for CBD markets and the highest level in 26 years for non-CBD markets.</p><p>Decade high office supply at 544,510sq m over the past six months further hampered results with a further 652,208sq m to be added in 2021.</p><p>Despite this, major property REITS including Dexus and Centuria expect the market to change course with indicators for office demand to improving sharply on six months ago.</p><p><strong>Australian office vacancy</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>Market</th><th>Jan 2021</th><th>July 2020</th><th>Jan 2020</th></tr></thead><tbody><tr><th>Hobart CBD</th><th>5.1%</th><th>4.1%</th><th>4.1%</th></tr><tr><th>Melbourne CBD</th><th>8.2%</th><th>5.8%</th><th>3.2%</th></tr><tr><th>Sydney CBD</th><th>8.6%</th><th>5.6%</th><th>3.9%</th></tr><tr><th>Canberra</th><th>10.1%</th><th>10.1%</th><th>10.3%</th></tr><tr><th>Brisbane CBD</th><th>13.6%</th><th>12.9%</th><th>12.7%</th></tr><tr><th>Adelaide CBD</th><th>16.0%</th><th>14.3%</th><th>14.2%</th></tr><tr><th>Darwin CBD</th><th>19.7%</th><th>16.8%</th><th>16.8%</th></tr><tr><th>Perth CBD</th><th>20.0%</th><th>18.4%</th><th>17.5%</th></tr><tr><th>CBD Markets</th><th>11.1%</th><th>9.2%</th><th>8.0%</th></tr><tr><th>Non-CBD Markets</th><th>13.4%</th><th>10.4%</th><th>9.2%</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sup><sub>^Source: PCA Australian Office Market Report, January 2021</sub></sup></p><p>Dexus research general manager Peter Studley said professional job advertisements, an indicator of corporate hiring intentions, were up 31 per cent on six months ago.</p><p>Meanwhile employment in white collar industries has grown by 2.5 per cent over the past 12 months</p><p>“After an uncertain year for office markets, an improvement in many of the key leading indicators signals a period of strengthening demand ahead,” Studley said.</p><p>“Capital flows into property are likely to remain strong during 2021 given the low interest rate thematic. ”</p><p>Centuria Office REIT fund manager Grant Nichols said the change in workplace requirements through the pandemic should boost non-CBD office markets.</p><p>“While working from home is still topical, we understand many workers want to be back in an office environment but not endure time consuming daily commutes, which compromise their work-life balance. </p><p>“Equally, many businesses, especially those affected by the pandemic, are conscious of cashflow and are actively seeking more affordable rents. </p><p>“These complementing themes highlight the desirability of decentralised office markets.”</p><p>Property Council chief executive Ken Morrison said with more office space due to come online in the CBD next year, it will be crucial for the wider economy that we reverse the current negative trend in demand.</p><p>“While it was not a surprise to see office vacancies increase in the middle of a pandemic, it is the new supply of office space that is responsible for three quarters of this impact, not reduced tenant demand,” Morrison said.</p><p>“Vibrant CBDs drive investment, growth and productivity and must be part of our national recovery planning.</p><p>“While vacancy rates for the six months to January 2021 are now the highest in some years, there is still strong interest in commercial property as evidenced in recent deals, particularly for premium CBD stock.”</p></div></div></div></div></div>

The negative trend in office demand needs to be turned around in order to support new office occupancy according to the Property Council of Australia

Brisbane’s office market remains relatively unscathed by Covid-19 as office vacancy grew slightly from 12.7 to 12.9 per cent in the six months to July.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Brisbane’s office market remains relatively unscathed by Covid-19 with office vacancy growing slightly from 12.7 to 12.9 per cent in the six months to July.</p><p>Office vacancy in south east Queensland performed better than Sydney and Melbourne which <a href="https://theurbandeveloper.com/articles/property-council-office-market-report-july-2020">increased </a>1.7 and 2.6 per cent according to the Property Council of Australia’s Office Market Report.</p><p>The Gold Coast also performed relatively well in Queensland with vacancies moving from 12.8 to 13 per cent. Brisbane fringe suburbs jumped from 13.6 in January to 14.2 per cent in July.</p><p>However the extent of Covid-19’s impact on the future of office space in the region is unclear, according to office leasing experts. </p><p>Knight Frank partner Mark McCann said the Brisbane office market is experiencing, like all markets, a general downturn in transactional activity as many corporates come to terms with the current crisis and navigate their business going forward.</p><p>“With the exception of [Dexus&#x27;] The Annex at 12 Creek Street, there has been no new supply additions in the CBD and as such we do not anticipate significant fluctuations in the overall vacancy rate for the CBD,” McCann said.</p><p>“The extent of sublease space has not yet been realised in Brisbane but we do anticipate pockets of sublease to emerge over the coming months as corporates begin to finalise their new workplace designs post-Covid-19. </p><p>“The current average re-occupancy of most CBD building is between 50 to 60 per cent.”</p><p>Savills state office leasing director David Howson said that with the uncertainty in the market, tenants are continuing to review their office space requirements, with many no clearer as to the longer-term effects on their occupation.</p><p>“Those facing imminent expiries are looking for opportunities to extend or hold over their current leases, or re-set in better quality accommodation at terms similar to current passing rates,” Howson said.</p><p>“Current market murmurings foreshadow an influx of fitted space—both sublease and backfill—within the prime and secondary markets, with prime seen as potentially witnessing the greatest change in vacancy.”</p><p>McCann added that the focus of most owners during the first half of 2020 has been the implementation of capital works programmes on building and lobby upgrades, along with new wellness and hygiene initiatives to future-proof their assets going forward.</p><p>“While transaction volumes are low, we have not seen downward shifts in asking rents across the prime grade; incentives continue to be the trigger to increase marginally for any active tenants in the current market wanting to transact now. </p><p>“The B-grade market continues to be the most volatile, with higher tenant demand levels, but for space of less than 500 square metres.”</p><p>Earlier this month, Charter Hall <a href="https://theurbandeveloper.com/articles/charter-hall-60-queen-street-brisbane">lodged plans</a> for a 35-storey office tower in the CBD while Cornerstone Properties submitted <a href="https://theurbandeveloper.com/articles/cornerstone-251-wickham-street-fortitude-valley">plans</a> for a commercial tower in Brisbane&#x27;s Fortitude Valley fringe.</p><p>Sekisui House recently <a href="https://theurbandeveloper.com/articles/sekisui-house-lodges-plans-for-west-end-office">lodged</a> plans for a commercial building in West End.</p><p>Meanwhile investors and developers are looking for opportunities to <a href="https://theurbandeveloper.com/articles/offshore-investors-circle-commercial-assets">obtain </a>new assets while the market is down or <a href="https://theurbandeveloper.com/articles/global-companies-to-downsize-office-footprint-covid-19">revamp </a>older stock to meet new tenant demands. </p></div></div></div></div></div>

Brisbane’s office market remains relatively unscathed by Covid-19 as office vacancy grew slightly from 12.7 to 12.9 per cent in the six months to July

Industrial property sentiment improves during Covid-19, dissimilar to other sectors. 

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The industrial sector is the only property market to make it into positive territory as Covid-19 affects sentiment across the board.</p><p>The latest results from the ANZ Property Council survey, which tracks changes in property market sentiment, shows a modest improvement across all sectors for the September quarter.</p><p>However the office, tourism and residential sectors still remain  deep in negative territory. </p><p>In the survey, expectations for industrial property recorded solid gains in work scheduled, staffing levels, capital values and construction activity going forward.</p><p>This was likely due to the shift in consumers shopping online during the pandemic which benefited logistics and warehousing.</p><p>Improving sentiment was also seen in the a large number of transactions and approvals in recent weeks including Charter Hall’s $210 million Sydney <a href="https://theurbandeveloper.com/articles/charter-hall-industrial-park-minto-sydney">acquisition</a>, Pelligra Group’s $100 million <a href="https://theurbandeveloper.com/articles/pelligra-group-plan-100m-industrial-project">plans </a>in Melbourne and Dexus’ $173 million portfolio <a href="https://theurbandeveloper.com/articles/dexus-acquires-173m-industrial-assets">expansion</a>.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Commercial property confidence</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/020b5910-eda0-41d2-b37b-4e4f1642db21.jpg" width="800"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sub><sup>^ Source: ANZ-Property Council </sup></sub></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Despite this, the residential and composite commercial property sectors remained well below the key level of 100 index points—which is considered neutral—for only the second time in the survey’s history.</p><p>ANZ senior economist Felicity Emmett said the levels were depressed in the wake of Covid-19 and the shutdowns put in place by the federal and state governments to contain it.</p><p>“Not surprisingly, the tourism sector has been the hardest hit, although office property expectations have deteriorated further over recent months as businesses reassess the long-term outlook for office space,” Emmett said.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Residential sentiment on the up</strong></h2><p>The ANZ senior economist said confidence in the residential sector is generally higher, but house price expectations fell further.</p><p>“Price expectations were quite negative across most states except for South Australia, where a net balance of 29 per cent of firms expect prices to rise over the coming year,” Emmett said.</p><p>“Victorian firms were the most pessimistic, with a net balance of 44 per cent of firms expecting a decline in prices.”</p><p>Gains were made in forward work schedules, construction activity and staffing levels.</p><p>However, employment levels and property prices remained in negative territory.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Outlook for residential construction</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/76b549a6-8ca9-414f-a48c-d519ca3ae785.jpg" width="800"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sub><sup>^Source: ANZ-Property Council </sup></sub></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Emmett said the outlook for construction was the strongest in Western Australia, followed by South Australia then Queensland.</p><p>“The improvement in construction expectations is likely to take a little while to feed into residential building approvals; they fell 16.4 per cent in May and are likely to fall again in June,” Emmett said.</p><p>“The Housing Industry Association, however, reported that new home sales rose 78 per cent in June, suggesting HomeBuilder has breathed some life into the sector and that building approvals should rise in coming months. </p><p>“An improvement over coming months looks likely, although any recovery will be crimped by the drop in overseas migration and an extended period of high unemployment.”</p></div></div></div></div></div>

The industrial sector has come out a winner during Covid-19, but sentiment remains in negative territory for office, tourism and residential...

173c3359-acac-401c-a2c2-d7f482709ff3

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>The </strong><a href="https://theurbandeveloper.com/articles/australias-office-vacancies-at-record-lows"><strong>ever-increasing demand for new office space </strong></a><strong>is driving down vacancy rates in CBDs across Australia, with Melbourne and Sydney at decade-lows, according the latest figures from the Property Council Australia.</strong></p><p>For the six months to January the national office vacancy fell by 0.7 per cent to 8.5 per cent with the CBD office market dropping to 8.3 per cent, is its lowest level since January 2013.</p><p>Net absorption was 159,092sq m during the six months to January 2019, which is on par with the historical average of 158,614sq m while 243,436sq m of office space was created, lower than the historical average of 314,066 square metres. </p><p>The tightest markets are the Melbourne CBD where the vacancy rate fell to 3.2 per cent, down from 3.6 per cent, and Sydney CBD which dropped to 4.1per cent, down from 4.6 per cent. </p><p>Related: <a href="https://theurbandeveloper.com/articles/commercial-real-estate-still-strong-despite-residential-downturn">Commercial Real Estate Clocks Record Result</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/8cb42333-f219-4b32-b2b4-7551de5db3fc.jpg" width="920"/></picture><div><span style="align-content:left;opacity:0.8">Lang Walker&#x27;s $3.2 billion Parramatta Square approval last month has signaled the current expansive needs of the commercial sector in Sydney. </span><span style="float:right;opacity:0.8">Image: Johnson Pilton Walker </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>“Competition is good, and Australia has two of the strongest office markets in the Asia Pacific region,” Property Council of Australia NSW executive director Jane Fitzgerald said.</p><p>“However, Sydney is losing ground on our southern neighbour in terms of both space in the pipeline and demand.”</p><p>The Sydney CBD vacancy rate dropped from 4.6 per cent to 4.1 per cent in the six months to January 2019 mainly due to withdrawals from the market. </p><p>However, the Sydney CBD holds a higher vacancy rate than Melbourne at 3.2 per cent which sits at a 10 year low and remains the lowest of any Australian CBD.</p><p>Melbourne CBD will see a surge in supply over the next three years with 480,000sq m of new stock expected and pre-commitments sitting at over 55 per cent.</p><p>Related: <a href="https://theurbandeveloper.com/articles/sydney-and-melbournes-office-market-strength-dexus">Office Market Showing No Signs of Slowing: Dexus</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/1220a76a-57b3-4a08-b51e-ef34a8f17fcf.jpg" width="941"/></picture><div><span style="align-content:left;opacity:0.8">Melbourne&#x27;s CBD fringe office market is set to see the addition of a new tower with development approval granted for a $300 million office tower planned by Melbourne-based developer Goldfields.</span><span style="float:right;opacity:0.8">Image: COX Architects</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>“A steady and continued supply of high quality commercial office space is crucial to our continued ability to meet demand,” Property Council of Australia Victorian executive director Cressida Wall said. </p><p>Melbourne also stands to benefit from the Victorian government’s announcement to review the C270 planning controls restricting further development within the Hoddle Grid.</p><p>Just three developments, two office buildings and an apartment project in central Melbourne have been approved under a new C270 planning controls imposed by the government two years ago.</p><p>Over the last six months, 98,758sq m of commercial space was added and 42,134sq m was withdrawn in Victoria.</p><p>“At 135,290sq m, the Melbourne CBD recorded the highest level of absorption over 2018 of all the major CBD office markets,” CBRE associate director Felice Spark commented.</p><p>“However, while the city has been in between supply cycles, just shy of 400,000sq m of space will be added to the market over 2019-2020, causing vacancy to rise to a forecast 6 per cent by the end of 2019 before peaking at 9.3 per cent by the end of 2022.” </p><p>The Property Council Australia now forecast Melbourne&#x27;s CBD to grow from 317,500 to 480,400 workers, resulting in a projected need for an additional 4.4 million square metres of commercial floorspace by 2036.</p><p>Related: <a href="https://theurbandeveloper.com/articles/sydney-and-melbournes-office-market-strength-dexus">Office Market Showing No Signs of Slowing: Dexus</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/66e2beb5-4b8c-46fd-a0f3-8a4fbebd5245.jpg" width="960"/></picture><div><span style="align-content:left;opacity:0.8">Late last year, plans were lodged with the Newcastle City Council for Newcastle&#x27;s largest stand-alone office building.</span><span style="float:right;opacity:0.8">Image: Bates Smart</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Colliers International head of tenant advisory Simon Crouch weighed in anticipating further tightening in Sydney and Melbourne over the next 18 months to limit large tenants looking for space above 5,000 square metres.</p><p>“Larger tenants need to be considering their options and future accommodation strategies three years in advance of their lease expiries,” Crouch said.</p><p>“Conversely, Perth remains at a high vacancy rate and will continue to favour tenants; and while Brisbane is also still very much a tenants market with adequate choice, we are beginning to see signs of vacancy declining in better quality assets within the CBD.”</p><p>Brisbane&#x27;s vacancy rate lowered from 14.7 per cent to 13 per cent for the six months while Perth tightened slightly from 19.4 per cent to 18.5 per cent. </p><p>“This is a strong result for the Brisbane CBD,” Property Council Queensland executive director Chris Mountford said.</p><p>“With an additional 47,700sq m of space entering the market later this year, the city should be well placed to absorb this new supply.”</p><p>The Property Council Australia now expects almost one million square metres of office space will be added to Australian CBD markets over the next three years.</p><p>Half of this new space being supplied to the Melbourne market which will grow by more than 10 per cent of its current stock.</p></div></div></div></div></div>

For the six months to January the national office vacancy fell by 0.7 per cent to 8.5 per cent.

The ANZ/Property Council survey reveals construction expectations in each sector as national property industry confidence increases...

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The industrial and residential construction boom is expected to continue for the next 12 months as national property industry confidence lifts.</p><p>Industrial construction expectations are continuing on an upward trend and residential remains in positive territory, according to the latest ANZ-Property Council Survey.</p><p>Although the national confidence score for December 2020 quarter increased by 6 index points to 82, it is still well below a neutral score of 100 and the survey historical average of 123.</p><p>The result is weighed down by the retail construction expectations down -22, followed by hotels at -18 and office down -14 index points.</p><p>ANZ senior economist Felicity Emmett said that property sentiment has improved a little, but remains depressed in the wake of Covid-19.</p><p>“The impact remains widespread across states and sectors, with sentiment in the tourism, office and retail sectors still extremely weak. </p><p>“In contrast, the industrial property sector has strengthened alongside the acceleration in e-commerce.”</p><p>After dipping in the June 2020 survey, residential construction expectations for the next 12 months have remained in positive territory.</p><p>Property Council of Australia chief executive Ken Morrison said stimulus measures such as HomeBuilder were providing a much-needed boost for the property industry at a critical time.</p><p>“As the scheme has become available in all states and territories we have seen a big lift in sentiment among those in residential development,” Morrison said.</p><p>“Home Builder is the pop star of government stimulus measures released so far; highly effective, immediate and good value for money.</p><p>“The challenge will be maintaining this momentum beyond December when the current scheme expires and we are looking at a huge drop in population growth due to closed borders.”</p><p>Morrison said there was still a long way to go before property industry sentiment returned to its pre-Covid levels.</p><p>“Government stimulus measures will be essential to helping our industry drive economic recovery,” Morrison said.</p><p>“As household income supports such as JobSeeker and JobKeeper are wound back over the next few months, all levels of government will need to step in with incentives that will deliver fast and effective stimulus to build momentum for recovery.”</p></div></div></div></div></div>

NSW property industry confidence has
dropped to the lowest in the nation

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Tightened lending restrictions and rising interest rates has pushed property industry confidence levels to a seven-year low as weakening house prices in NSW and Victoria weigh heavily on the market.</strong></p><p>According to an industry pulse check released by NAB, confidence fell sharply for the second straight quarter with Sydney and Melbourne, the twin engines of Australia’s house price boom, the key drivers of uneasy sentiment and &quot;collapsing&quot; market confidence.</p><p>APRA&#x27;s lending curbs and the fallout from the banking royal commission have received the lion&#x27;s share of the blame, with housing confidence dipping to new lows.</p><p>Sydney prices are now 6.2 per cent lower than their July peak, while Melbourne, which peaked in November, has fallen 4.4 per cent. </p><p>This was especially acute in Victoria where house price falls are now tipped to be much bigger.</p><p>To date, the weakness has been concentrated in houses, with the declines in apartment prices less severe. </p><p>Related: <a href="https://theurbandeveloper.com/articles/sydney-and-melbourne-house-prices-continue-to-fall">Weak Market Conditions to Impact House Prices: Report</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>NAB Hedonic House Price Forecasts (%)</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>City</th><th>2016 </th><th>2017</th><th>2018f</th><th>2019f</th><th>2020f</th></tr></thead><tbody><tr><th>Sydney</th><th>10.7 </th><th>2.1 </th><th>-5.7 </th><th>-1.6 </th><th>0.1 </th></tr><tr><th>Melbourne</th><th>9.5 </th><th>9.1 </th><th>-5.9 </th><th>-2.2 </th><th>-0.6</th></tr><tr><th>Brisbane</th><th>2.7</th><th>3.1</th><th>0.2 </th><th>0.0 </th><th>0.0 </th></tr><tr><th>Adelaide</th><th>3.8 </th><th>3.3 </th><th>0.9 </th><th>1.7</th><th>1.7 </th></tr><tr><th>Perth</th><th>-2.9</th><th>-2.6 </th><th>-2.4 </th><th>-0.2 </th><th>0.0 </th></tr><tr><th>Hobart</th><th>9.6 </th><th>12.9 </th><th>6.4 </th><th>1.8 </th><th>1.8 </th></tr><tr><th>Cap City Avg </th><th>7.3</th><th>4.0 </th><th>-3.7 </th><th>-1.0 </th><th>0.0 </th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>NAB’s residential property index forecast that house prices would continue to “correct” over the next 18 to 24 months, with Sydney falling around 10 per cent peak to trough and Melbourne 8 per cent.</p><p>“NSW had gone from the top of the ladder to the bottom,” Property Council NSW executive director Jane Fitzgerald said.</p><p>ANZ and Property Council of Australia&#x27;s seperate survey revealed similar declines to property industry confidence with NSW dropping 14 index points from 134 to 120 over the quarter and 27 index points over the 12 months to December 2018.</p><p>The survey assessed the views of more than 900 participants, including owners, developers, agents, managers, consultants and government – across all major industry sectors around the country.</p><p>Across Australia, <a href="https://theurbandeveloper.com/articles/sydney-and-melbourne-house-prices-continue-to-fall">prices have fallen for 11 months in a row</a> with fewer active buyers within the market leading to higher inventory levels and reduced competition.</p><p>“A combination of tighter lending, a slower residential market and lower economic growth expectations have driven lower sentiment,” Fitzgerald said.</p><p>“What we do not want is for this lower sentiment to result in lower housing supply.”</p><p>“We have been building more homes over the past five years to meet growing demand however this must continue; the housing targets outlined in the Greater Sydney Commission’s plans must be met and then we must set more for the next 6-10 years.</p><p>Related: <a href="https://theurbandeveloper.com/articles/abs-data-shows-massive-decline-in-unit-approvals">Residential Approvals at Lowest Levels in Two Years</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>NAB Hedonic Unit Price Forecasts (%)</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>City</th><th>2016</th><th>2017</th><th>2018f</th><th>2019f </th><th>2020f </th></tr></thead><tbody><tr><th>Sydney</th><th>5.8</th><th>5.4</th><th>-3.6 </th><th>-5.5 </th><th>-0.9 </th></tr><tr><th>Melbourne</th><th>4.7 </th><th>8.4</th><th>-2.7 </th><th>-3.4 </th><th>-1.0</th></tr><tr><th>Brisbane</th><th>-3.0</th><th>-1.2</th><th>-0.5</th><th>-4.5</th><th>-2.2</th></tr><tr><th>Adelaide</th><th>0.6</th><th>0.5 </th><th>1.2 </th><th>0.5</th><th>0.5  </th></tr><tr><th>Perth</th><th>-6.3</th><th>-0.9 </th><th>-6.9 </th><th>-2.3 </th><th>-0.8 </th></tr><tr><th>Hobart</th><th>6.4</th><th>9.1 </th><th>5.9</th><th>1.2 </th><th>1.2</th></tr><tr><th>Cap City Avg </th><th>3.5</th><th>5.1</th><th>-3.0 </th><th>-4.4 </th><th>-1.0 </th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p></p><p>The gloomy outlook for the once soaring property market has not all been bad news, with falls in NSW and Victoria offsetting gains  in Queensland.</p><p>The NAB survey of more than 300 property professionals revealed sentiment in Queensland had improved and is forecast to lead the country for house price growth in the next 12 months, with prices increasing by 0.8 per cent.</p><p>Perth has weakened again recently after showing some signs of stabilisation. </p><p>The other capitals and regional prices have generally held up better over the past year.</p><p>Hobart continues to be the exception with prices up 9.3 per cent over the year, though conditions appear to be moderating there too. </p><p>The index also highlighted that the boom in Australian housing sales to foreign investors has also run its course.</p><p>Overseas share of total sales has fallen to a seven-year low of 8.1 per cent in new markets and a survey low of 4.1 per cent in established markets.</p></div></div></div></div></div>

Property professionals in NSW and Victoria weigh in on falling prices and reduced access to credit

Property Employment

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Australia’s property industry has overtaken the health care and social assistance industries to become the country’s biggest job creator.</strong></p><p>The revelation was shared by a recent report developed by AEC Group, which revealed that than 1.4 million people were employed into the industry, growing at a rate of 22 per cent from 2013-14 to 2015-16.</p><p>The figures come despite signs that Australia’s housing market is transitioning towards weaker market conditions, indicating that the economy is still benefitting from the property boom.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/7b728622-66ac-4b22-9f03-ba2990a92f2c.jpg" width="1298"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Creating more than 390,000 jobs, AEC’s analysis shows that property has extended its lead as the biggest direct contributor to the nation’s GDP, totalling $202.9 billion in 2015-16, an increase of $20.4 billion since 2013-14.</p><p>Property Council chief executive Ken Morrison said the numbers involved white-collar and blue-collar jobs, from high finance to skilled trades, and from construction to property managers.</p><p>[Related reading: <a href="https://theurbandeveloper.com/articles/australia-ranked-third-least-affordable-housing-market-globally-">Australia Ranked Third Least Affordable Housing Market Globally</a>]</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/bbe647a7-d741-4b8d-b06c-8b4e3349352d.jpg" width="1319"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>“This data highlights the interlinked benefits of a strong property industry – construction activity not only helps boost supply and take the pressure off house prices, it also creates jobs for over 1.4 million Australians,&quot; Morrison said.</p><p>“Our industry creates assets which are important for every community and helps shape our cities for the future.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The property industry contributes some $87.9 billion annually in combined Australian, state, territory and local government tax revenues, an increase of $15.8 billion over the same period.</p><p>Morrison urged governments to be careful not to overtax the industry, as the research revealed one in four Australians whose wages were reliant on the property industry.</p><p>State by state, property is the biggest contributor in almost every economy, accounting for 12.4 per cent in VIC, 10.8 per cent in SA, 12.7 per cent in NSW and 14.2 per cent in QLD.</p></div></div></div></div></div>

PROPERTY COUNCIL OF AUSTRALIA