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An historical event about to take place in Australia; Rental prices have peaked in ALL capitals and will now decline for years
Topic Started: 13 Jul 2014, 06:59 PM (18,308 Views)
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Filthy Rodent

Simon_S
4 May 2017, 11:04 AM
Ahhh.......Good Times......
The best of times, for homeowners and property investors.
Consumer protection laws extended to small businesses. Banks not permitted to repossess due to non-monetary defaults (for example, a fall in the property value).
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Simon_S
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Rat
4 May 2017, 11:10 AM
The best of times, for homeowners and property investors.
And we all know the Good Times last Forever.........

Oh wait.....Interest Rates are Rising........

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Rufus
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Rat
4 May 2017, 11:10 AM
The best of times, for homeowners and property investors.
Certainly for the long term homeowners.

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Edited by Rufus, 4 May 2017, 03:08 PM.
Take risks - if you win you will become wealthy, if you lose you will become wise
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Filthy Rodent

It's not only residential rents that are booming. Commercial rents are heading for the moon too...

https://sourceable.net/office-rents-set-take-off/

Rents for office space in Sydney and Melbourne are set to rise by 23 percent each over the next three years as rising demand is met by a dearth of new supply, according to the latest forecast.

In its latest forecasts, real-estate services firm CBRE said prime net effective rents for office stock would rise from an estimated $705 per square meter in December 2016 to $870 per square meter in December 2019.

Over the same period, prime net effective rents in Melbourne are expected to increase from $360 to $445 per square meter.

Across both cities, the upward rental cycle is being driven by a dearth of new supply.

In Sydney, even as tenants snap up a new 37,0000 in stock, more stock is expected to be withdrawn in 2017 (mostly for residential conversion) than is to be added, whilst net absorption is expected to further exceed net additions in 2018.

Indeed, significant volumes of new stock are not expected to hit the market until 2020.

This is the case even as limited new supply and strong demand pushed rents up 25.5 percent in 2016.

Likewise in Melbourne, net additions of just 8,000 square meters in 2017 – lower than each of the past two years by a factor of eight – will be nowhere near sufficient to offset the robust net uptake of 58,000 square meters in that year.

In its report, CBRE said tenants in Sydney would be unlikely to relocate in response to the strong rents as rents were in fact largely returning back to historic averages after contracting between 2013 and 2015 and that rental cost was only one factor in a tenant’s location strategy.

In Melbourne, CBRE said demand would be driven by strong white collar employment growth whilst supply additions would be negligible.
Consumer protection laws extended to small businesses. Banks not permitted to repossess due to non-monetary defaults (for example, a fall in the property value).
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Chris
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Rat
16 May 2017, 01:43 PM
It's not only residential rents that are booming. Commercial rents are heading for the moon too...

https://sourceable.net/office-rents-set-take-off/

Rents for office space in Sydney and Melbourne are set to rise by 23 percent each over the next three years as rising demand is met by a dearth of new supply, according to the latest forecast.

In its latest forecasts, real-estate services firm CBRE said prime net effective rents for office stock would rise from an estimated $705 per square meter in December 2016 to $870 per square meter in December 2019.

Over the same period, prime net effective rents in Melbourne are expected to increase from $360 to $445 per square meter.

Across both cities, the upward rental cycle is being driven by a dearth of new supply.

In Sydney, even as tenants snap up a new 37,0000 in stock, more stock is expected to be withdrawn in 2017 (mostly for residential conversion) than is to be added, whilst net absorption is expected to further exceed net additions in 2018.

Indeed, significant volumes of new stock are not expected to hit the market until 2020.

This is the case even as limited new supply and strong demand pushed rents up 25.5 percent in 2016.

Likewise in Melbourne, net additions of just 8,000 square meters in 2017 – lower than each of the past two years by a factor of eight – will be nowhere near sufficient to offset the robust net uptake of 58,000 square meters in that year.

In its report, CBRE said tenants in Sydney would be unlikely to relocate in response to the strong rents as rents were in fact largely returning back to historic averages after contracting between 2013 and 2015 and that rental cost was only one factor in a tenant’s location strategy.

In Melbourne, CBRE said demand would be driven by strong white collar employment growth whilst supply additions would be negligible.
You posted anecdotal evidence that a vested interests 'felt' may lead to rental increases back to historical norms.

Wow, convincing and scary at the same time.
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Filthy Rodent

Chris
16 May 2017, 01:46 PM
convincing and scary at the same time.
Scary for renters, but good news for those who own the property.
Consumer protection laws extended to small businesses. Banks not permitted to repossess due to non-monetary defaults (for example, a fall in the property value).
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Chris
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Rat
16 May 2017, 01:47 PM
Scary for renters, but good news for those who own the property.
News is it?

Are you saying there's an element of fact in this anecdotal evidence from a vested interest that commercial rents may return to historical norms?
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Simon_S
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Rat
16 May 2017, 01:43 PM

Rents for office space in Sydney and Melbourne are set to rise by 23 percent each over the next three years
Because they say so........
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Rat
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Filthy Rodent

Chris
16 May 2017, 02:13 PM
commercial rents may return to historical norms
What's the 'historic norm' for commercial rent in Sydney? Do you have some data?
Consumer protection laws extended to small businesses. Banks not permitted to repossess due to non-monetary defaults (for example, a fall in the property value).
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Chris
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Rat
16 May 2017, 02:26 PM
What's the 'historic norm' for commercial rent in Sydney? Do you have some data?
It's your article pal, you want me to provide data to support your arguement?

Not likely, you're on your own with this one.
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