Developments set to take place in Sydney’s CBD could present ample opportunity for savvy investors, with tenant demand increasing.
Centuria Property Funds CEO Jason Huljich, believes the first stages of Sydney’s Barangaroo development are one source of change that have the potential to affect rents and property prices.
“The shape of the city is changing,” Mr Huljich said. “The effect of the Barangaroo development is a prime example – it is literally expanding the CBD footprint.
“A bigger footprint has also intensified interest in the mid-town precinct, which is highlighted by the new development at 161 Castlereagh street. The building is 97 per cent pre-leased, with a strong tenant profile including ANZ, Freehills and The Boston Consulting Group and completion expected in mid-2013,” he explained.
“Growing interest in the mid-town precinct has been supported by attractive rents and incentives on offer, as landlords seek to buck the more general ‘slow-down’ trend that has hit certain parts of the economy.”
Over the first half of 2012, vacancy rates in the Sydney CBD fell from 9.7 per cent to 8.2 per cent.