Market Byte

  The phrase "Survive to '25" has gained attention, particularly in European and US commercial real estate discussions but it resonates with the current challenges facing Brisbane’s CBD retail market. As of June 2024, the city’s retail vacancy rate sits at 19.2%—the second highest in Australia, following Perth at 25.0%, (CBRE Research, August 2024). In Brisbane, retail spending has been large...

According to the Australian Taxation Office, every year you need to value your Self-Managed Superannuation Fund (SMSF) assets and provide supporting evidence to your auditor. A key responsibility SMSF trustees have every income year is valuing your fund's assets at 'market value'. You should use a qualified independent valuer if: the value of a fund asset represents a significant ...

Overview of the Brisbane Fringe MarketThe Brisbane Fringe commercial market is undergoing a significant transformation, driven by rising institutional demand for Build to Rent (BTR) developments. This shift reflects changing investment strategies and a strong interest in the rental sector. Key BTR ProjectsProminent sites like 458 Wickham Street and 50 Constance Street in Fortitude Valley, orig...

In 2024, real estate valuations play an increasingly crucial role in financial reporting, particularly for compliance with key accounting standards. For many businesses, understanding the nuances of real estate valuation ensures their financial statements are accurate and compliant. One of the core principles guiding these valuations is International Financial Reporting Standards (IFRS) 13, Fai...

The Northern Fringe of Brisbane, including key suburbs like Bowen Hills and Fortitude Valley, continues solidifying its position as one of the most sought-after commercial investment areas. Known as the Urban Renewal Precinct, this region benefits from Brisbane’s strong population growth and robust economic performance, making it a hub for investors and businesses alike. Population Growth and ...

The industrial property market in Brisbane’s southside is undergoing significant shifts driven by high debt costs and limited land supply. Developers face challenges with speculative developments as financing costs rise and market sentiment changes. This has led to a slowdown in the acquisition of vacant land, further tightening the already scarce supply of developable industrial land. With on...

A recent assessment of a light industrial unit in Brisbane’s Northern Precinct has highlighted the growing popularity of these assets. Not just useful for a tradie shed or a big toy locker, these compact units are increasingly being utilised for warehousing/distribution by smaller online retailers, flexible exercise space by specialist gyms and office space by marketing/recruitment agencies. T...

In a recent assessment of industrial land, local real estate operatives indicated there are ample options for hardstand rental in Pinkenba with land areas ranging between 4,000m² and 2Ha. Furthermore, market conditions for sales of vacant land is starting to show signs of slowing.  Typically, agents have indicated that high construction costs together with high land selling prices are reducing...

The Brisbane CBD retail vacancy rate is currently around 19%, with greater vacancy in fringe locations away from core pedestrian thoroughfares.  Local real estate agents are indicating when tenants want to lease premises, they desire prime locations with high pedestrian foot traffic passing.  While the number of people in the CBD continues to slowly increase, stagnating gross effective rental r...

Since inflation began to rise in late 2020, and peaking at 7.8% in December 2022, the Reserve Bank of Australia (RBA) continues to keenly observe how rising inflation is impacting the costs of everyday goods and services, both domestically and abroad. Seeking to bring inflation to within its target range between 2 -3 percent by adjusting the cash rate. Recent Monthly Inflation data (which only...

The Property Council of Australia’s Office Market Report recently released has shed some light on the changing profile of the CBD and non-CBD office markets across Australia. The post-COVID-19 economy has been particularly challenging for some office locations, with many staff continuing to work from home. This shift has changed the nature of new take up of space and movement across regions. T...

Our CBD’s and tourist centres have been put under huge pressure as a result of the global pandemic and resulting restrictions on domestic and international travel. Australia is now starting to relax policies to allow additional international travellers into the country along with workers returning to the CBD’s. We don’t expect international traveller numbers to return to pre-pandemic levels st...

Driven by Australians desire for dining out and sophisticated coffee culture, the restaurant/café sector had been trending positively until the onset of COVID-19. According to ABS data, revenue significantly decreased by approximately 50% through the first quarter of 2020. This was due to government enforced mandates forcing all non-essential businesses to temporarily close and workers to remai...

Demand for Childcare development sites is driven by labour force participation rates, an increasing population of children aged 14 and under, household discretionary income and government assistance. Locations for Childcare sites are often sought in areas where permissible zoning exists, is centrally located to places of employment, densely populated residential precincts and include a greater...