Looking For Office Space In Australia? Choose Melbourne
Companies operating in the Asia-Pacific region are met with increasingly high prime CBD rental prices. The region has traditionally housed the most expensive and highly sought after office space markets in the world, being home to six of the world’s ten most expensive office markets. Competing for office space in such an intense environment, more and more businesses are looking towards basing their operations elsewhere.
According to Cushman & Wakefield’s Office Space Around the World 2013 report, although the Asian powerhouses of Hong Kong, Tokyo and Beijing are experiencing a slowing down in market activity due to an overall slowdown in the economy; locations closest to Australia within the Southeast Asian region saw notable rental and tenant growth over the year. Some examples include a +46% annual rental growth in Indonesia, an increase of 6% in Philippines’ prime rents, and an increase of 25% in New Delhi’s prime rents. The Asia Pacific region as a whole is forecasted to experience further positive rental and tenant growth, which will lead to more intense competition for office spaces.
Another point for Melbourne over Sydney.
The conditions in Melbourne means that overseas businesses don’t need to look any further when choosing a city to set up an office in Australia. Within Australia, Melbourne reigns supreme as the most affordable city to rent an office, on average 40% less expensive than Sydney’s office rental prices. Cushman & Wakefield’s report indicates that not only is Melbourne one of the most affordable cities in the whole Asia-Pacific region, but also shows stability with a 2% annual rental growth. Coupling that with the fact that development projects in the Docklands and Southbank precincts are producing world-class infrastructure and facilities, and hardly any premier developments in Sydney for the last 20 years, we can see why businesses are continually choosing Melbourne over the rival city of Sydney.
Melbourne Is On The Move.
With The Westpac-Melbourne Institute Consumer Sentiment Index showing an upward trend in consumer confidence, a recent announcement of a $36 million investment in transport infrastructure, and a $12 billion Docklands development project, it is a period of exciting growth for Melbourne. Future prospects for Melbourne are high and should offer encouragement to investors – both overseas and domestic.
Question: Would you like to work in Melbourne? Why? Why not?