The national economy decelerated over Q2 2014, with growth of 0.5% compared to 1.1% in Q1. This followed a strong start to the year with 1.1% growth in Q1 also above expectations of 0.8%. The state economy however experienced its first quarterly contraction in over three years, with State Final Demand (SFD) recorded at negative 0.4% in Q2 2014. Notwithstanding, annual growth remained robust at 3.6%, supported by a strong Q1 result of 2.7%.
Over the first half of 2014, Sydney experienced a net reduction in CBD stock, falling by 6,518 sq m. This was driven by the on-going withdrawal of secondary grade stock. This is expected to remain the trend over the medium term, with 275,000 sq m of space expected to be withdrawn for alternate uses. The next wave of significant new supply begins in 2015, when 199,553 sq m of new developments and 94,419 sq m of refurbished space is forecast to complete over the year. With stock withdrawals expected to reach 180,000 sq m in 2015, net supply is likely to reach approximately 112,000 sq m for the year.
Source : DTZ