There has been a widely held view for some time that following a sustained period of weakness from 2011 to 2013, office tenant demand in Sydney would begin to recover in 2014 and strengthen into 2015. The latest results from the Property Council of Australia (PCA) mid-year office market report suggest that this recovery is on track.
Here, we examine this apparent nascent recovery in Sydney’s office demand and analyse how sensitive it is to changes in global and local conditions. The baseline expectation is for a continuation of the slow, but steady global recovery. However, downside risks persist, with the most relevant to Australia being financial crisis in China resulting from unsustainable credit growth in the property sector.
Source : DTZ France