Growth in demand for Wollongong office space

The Illawarra Chapter of the Property Council is pleased to report an increase in demand for Wollongong office space over the past twelve months. The vacancy rate in Wollongong decreased from 13.7 per cent to 12.2 per cent, as reported in the Property Council of Australia’s latest Office Market Report released today.

“Wollongong has seen widespread increase in demand for office space across, with a decrease in vacancy rates across almost all grades. This is a positive indicator of the growing diversity and strength of the Illawarra economy,” said Property Council Illawarra Regional Manager, Jancey Malins.

“2,467 sqm of office space was added to Wollongong’s office stock, with positive net absorption of 4,341 sqm. The strongest demand recorded for A Grade office space, with a net increase in demand of 2,457 sqm.

“This overall increase in demand reverses trends observed in recent years, and is testament to the success of the recent wave of public and private sector investment in rejuvenating Wollongong City Centre.

“While the Illawarra is witnessing increasing demand and growth, significant infrastructure and policy changes are needed to continue this momentum and unlock the region’s potential. Issues of improved transport infrastructure, housing affordability and creating local job opportunities are central to this,” stated Ms Malins.

These issues and full details of the Office Market Report, will be released at the Illawarra Outlook Lunch on Wednesday, 24 February at the Novotel Wollongong.

 

Media contact:  Jancey Malins  |  M  0475 770 799  |   E  jmalins@propertycouncil.com.au

 

Analysis – Wollongong market

Note – analysis is the year to January 16

Headline comments:

  • Total vacancy decreased in the Wollongong market over the year to January 2016
  • This was due to positive demand
  • D Grade was the only segment to record negative demand
  • There is no space in the pipeline in the short to medium term

 

Vacancy analysis:

  • Total vacancy decreased from 13.7 per cent to 12.2 per cent in the year to January 2016
  • The vacancy decrease was due to net absorption of 4,341sqm
  • 2,467sqm of space was added over the period
  • D Grade was the only segment to record negative demand

 

Future supply:

  • There is no space in the pipeline for this market
  • 5,200sqm of space is mooted

 

Key market indicators, Wollongong (aggregate)