Australia ViewPoint - Centralising and taking flight-to-quality May 2017
The Perth CBD office market has seen some extreme conditions over the past decade, from the unprecedented highs during the peak of Western Australia’s mining boom to the subsequent slump as the sharp fall in commodity prices coincided with the end of the construction and investment phase in the mining sector in the north of the state. These events have led to significant movements and corrections in both demand and rental rates for office space. Perth now appears to have moved beyond the worst of the downturn, and the price-corrected rents have increased the affordability of inner-city office accommodation. As a result, we are seeing a number of tenants move into the CBD from fringe and suburban markets, as well as existing CBD tenants upgrading to a higher grade asset in a flight-to-quality.