The year ahead for the office market is likely to continue along the same path as it did throughout 2018 with interest underpinned by national investors for property offering strong investment returns with long term leases or national tenants, combined with counter cyclical purchases.
There is positive sentiment in the market on the back of major projects underway including the North Queensland Stadium, Haughton Pipeline duplication and the port channel widening, along with the recently announced projects including the $300 million Sun Metal zinc refinery expansion and improving confidence in the mining sector. To date market reaction to these developments has been relatively subdued, although is gaining traction, albeit at a very slow pace.
Leasing activity is likely to remain flat with a current over supply of available property relative to current demand creating no real stimulus for rental growth. Incentives by way of contribution to fit-out and rent-free periods for new office leases are likely to remain throughout 2019 with fierce competition from landlords to secure leases for premium tenants.
If you would like an assessment on your Townsville home against the current market please contact one of our agents - Free Market Appraisal
(Information compliments of Herron Todd White – View the Full report here).