National economic growth surprised on the upside in Q4 2013, recording 0.8% growth for the quarter. This is an improvement on previous quarters, which had largely held at around 0.6% quarter-on-quarter (q-o-q). New South Wales recorded 0.6% growth in State Final Demand over the same period, marginally above the quarterly 0.5% average of the past 3-years.
New office supply totalled 140,353 sq m in 2013, on par with the average of the past 10-years. The bulk of supply was delivered across two new premium grade buildings, with the balance accounted for by a number of smaller refurbishments. However, a recent trend has been the withdrawal of secondary grade buildings for residential conversion. Over Q1 2014, almost 45,000 sq m of secondary grade office space in the CBD was sold to international investors. These will most likely be converted to residential units.
Source : DTZ (Groupe UGL)