The national economy decelerated over Q2 2014, with growth of 0.5% compared to 1.1% in Q1. The state economy recorded 1.2% growth in State Final Demand (SFD) over Q2 2014, the strongest quarterly growth in over 2 years. This was supported by growth in the residential sector, particularly construction and mortgage lending.
Melbourne CBD received stock additions of 30,534 sq m in H1 2014, with a further 47,000 sq m reaching practical completion. The next six months will see limited supply, with less than 40,000 sq m expected to complete, taking total supply in 2014 to circa 110,000 sq m. In 2015 however, there is almost 145,000 sq m of space either already under construction or scheduled for completion. At this stage, 57% of this space is pre-committed. In line with the strong growth in the residential sector, DTZ Research has identified more than 130,000 sq m of secondary grade office space to be withdrawn for residential conversion.
Source : DTZ