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Vol 12. No.119

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	107.74	+0.48
Cash Rate	4.75	Steady
90 Day Bill	4.96	Steady
10 Year Bond	5.278	+0.060
ASX 200	4591.2	-16.8

New South Wales Property

• According to industry sources the A-grade vacancy rate for Parramatta’s office market is estimated to be less than 1% and about 8.7% for the overall market, down from 9.6% recorded in January 2011.
• A lack of new office development, increases in regional population and high demand from government tenants are all contributing to the tight vacancy rate.
• One of the few new developments is Eclipse Tower located at 60 Station Street which will add 25,660 square metres of A-grade stock to the market and is due for completion in August next year.
• The Leighton Properties and Grosvenor Australia joint venture is fully pre-leased to Deloitte, QBE and Landcom.
• Aside from Eclipse Tower, no new developments are expected to be completed in the Parramatta market until at least 2014, resulting in the tight vacancy rates continuing over the medium term.
• A-grade gross effective rents are projected to increase by an average of 6.1% per annum over the next two years.

• Max Frost & Co Pty Ltd has sold a 186 square metre office located at 50 Holt Street in Surry Hills for $1.25 million.
• The sale price equates to a rate of $6,720/m².

• Container traffic through Port Botany increased over the year to May rising by 6.1%.
• In May, total container volume through Port Botany was more than 161,750 TEUs (twenty-foot equivalent units), with the port handling an average of 5,200 TEUs per day.
• Total container trade through Port Botany was 1.855 million TEUs for the financial year to May 31, 2011, representing an increase of 5.7% on the same period last year.
• This bodes well for the industrial property sector in the coming year as demand for storage warehouses and distributions centres increases in line with the increase in demand for goods.

National Property

• The Housing Industry Association predicts that housing starts will fall to an annual total of 143,770 next financial year, resulting in the weakest year recorded for residential building since the mid 1990s.
• The greatest percentage fall is predicted for Western Australia with housing starts estimated to fall by 21% over 2010-11.
• In Queensland, new home starts are predicted to drop by 19% over 2010-11 to 26,780, with a 1% increase estimated the following year.
• New home starts in NSW are estimated to drop in 2010-11, with a 21% increase expected over the next two years to 37,240.
• Victoria is expected to finish off with a strong result, with an estimated 56,460 in building starts over 2010-11, however a fall of 17% to 46,980 is expected in 2011-12.

• In Sydney, 116 properties worth a total of $90.9 million sold at auction over the weekend, compared to 239 properties worth $195.4 million the previous weekend.
• On the same weekend last year 241 homes worth $192.7 million were sold in Sydney.
• In Melbourne, 78 properties worth a total of $43.1 million sold at auction, compared to 152 properties worth $107.8 million.
• On the same weekend last year 291 properties sold at auction in Melbourne for $184.8 million.