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Savills specialises in the provision of commercial, industrial and retail property research throughout Australia.

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Sydney CBD Strata Office Market Commentary (Standard Edition)
2009 Research by Sarah Duignan

Key Points

In 2008, Savills tracked $156.18m worth of office strata sales in the Sydney CBD from 173 sales. In the first quarter of 2009, $25.05m worth of sales in 24 transactions were recorded. The average strata sale rose to $1,132,000 million in March 2009 from $864,286 in March 2008 due to large sales in the Midtown and Western precincts.
Since 2000 the Sydney CBD market has shown an average demand level for CBD office strata product of 33,718 sqm per year. 2008 saw a total of 26,657 sqm transacted, marginally less than the historic average. Currently in 2009, absorption is at 5,219sqm mainly due to a number of whole-floor acquisitions.
Savills has tracked 6,668 sqm of project stock currently on the market from 8 buildings. Stock is likely to run out in the coming year due to interest rate reductions stimulating purchaser interest.
Capital values remained fairly buoyant despite the current economic situation. As at March 2009 the 5-year average capital value was $5,640/sqm, compared with $5,825/sqm in the corresponding period last year.

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