Future Directions Development Market Outlook
The first Future Directions event of 2017 saw a sell-out crowd gather to hear three industry experts provide an outlook for development over the next twelve months.
Carol Hodgson, JLL’s Director – Strategic Research, Australia, provided an in depth analysis across the office, residential and retail markets. Carol outlined that the Brisbane office market has likely reached the end of a significant development cycle, while the redevelopment of the state’s retail centres is still going strong. On the residential front, Carol outlined the expected drop off in apartment commencements this year following several years of strong supply.
Carol was joined onstage by CBRE Director, Mike Walsh, and Urbis Associate Director, Paul Riga, for a panel session moderated by new Qld Future Directions Chairman, Daniel O’Driscoll – QIC Investment Analyst. The industry experts also fielded questions from the audience, providing further analysis of each market, and outlining the challenges and opportunities that will be facing the industry in 2017.
Mike outlined that following a number of hotel and student accommodation conversions, the opportunities for adaptive reuse of an aging asset are quite limited in the Brisbane CBD. With banks currently having a significant aversion to risk, and supply having caught up to demand for student accommodation, owners who wish to withdraw and redevelop their building need to have a strong balance sheet.
Paul explored the current market trends in the apartment market. While Paul acknowledged there is an oversupply in some sections of the market, he outlined that there is still opportunity to find demand in certain suburbs and certain price points.
The Property Council would like to thank our panellists, principal sponsors Savills Project Management, supporting sponsor Cedar Woods, and the Queensland Future Directions committee. Without their support, events like this would not be possible.
Photos from the event can be found here.
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