Most office space added to market in 25 years

In a promising result, 15,000sqm of new office stock has been added to the Hobart CBD market, the most in 25 years, according to new data released by the Property Council of Australia.

The Australian Office Market Report showed Hobart CBD’s office market vacancy rate has declined slightly to 8.1 per cent over the six months to January 2018.

Tasmanian Executive Director of the Property Council, Brian Wightman, noted the steady result while welcoming the significant increase in supply.

“The Hobart office vacancy rate remained the third lowest capital city behind the Melbourne CBD and Sydney CBD markets,” Mr Wightman said.

“Increased demand for office space in the A Grade segment is extremely positive, however decreasing demand for B, C and D Grade office stock highlights the need to incentivise inner-city investment and development.

“An incoming State Government should consider stamp-duty concession for infill and inner-city residential up to the equivalent of the First Home Builder’s Grant,” he said

The Property Council encouraged all political parties to focus on initiatives which drive growth in Tasmania.

“The major parties should be encouraging investment through offering a range of incentives to develop exciting new projects which could be as simple as coordinating the raft of approvals that are required before even making a start.”

“Increasing Tasmania’s population through establishing an ambitious, intermediate population target for 2022 should also be a focus to drive continuous economic growth,” he said

The Property Council recognised the importance of the office component of the Parliament Square development being completed.

“15,000sqm of newly created office space is a clear sign that Tasmania’s economic future is looking up.”

“The construction jobs, building activity, public open space, and investment delivered by the Parliament Square project are incredibly welcome,” he said.

The Property Council dismissed moves by the Labor Party and Tasmanian Greens to review regressive mainland property taxes such as foreign investment and vacancy taxes as a politically motivated stunt.

“Tasmania competes in a global market where capital is shifted daily, yet the foreign investor rate remains extremely low.  We should be encouraging investment to create jobs, not turning them away.”

“The decision to review these taxes will do absolutely nothing for housing affordability,” he said.

Media contact: 
Brian Wightman |  E bwightman@propertycouncil.com.au