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Vol 11. No.129

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	87.80	+0.09
Cash Rate	4.50	Steady
90 Day Bill	4.90	+0.05
10 Year Bond	5.110	-0.020
ASX 200	4396.3	+39.4

NSW Property

Parramatta commercial market update (SMH Weekend Business 10-11/7 Pg.20)

• Parramatta’s vacancy rate is forecast to decline from 9.8% as at January to under 8% by mid-2011.
• The vacancy rate for A-grade space is 2.4% equivalent to 5,500m² as at January, well below the 15,000m² of tenant inquiry.

Sydney CBD law firm update (SMH Weekend Business 10-11/7 Pg.18)

• Over the past 2.5 years law firms leased approximately 90,000m² of space or 22.6% of total gross absorption in the Sydney CBD. Over the last year 40,000m² was committed.
• Allen & Overy, Britain’s third largest law firm has taken a 2 year lease over Levels 6 and 7 in Gold Fields House. They have the option to expand on Level 5.
• Minter Ellison is seeking 12,000m² to 14,000m² of space as their lease in Aurora Place expires in late 2013.
• Kemp Strang has a requirement for 4,500m² of space.

Sydney leasing transactions (SMH Weekend Business 10-11/7 Pg.18)

• Hyun has leased a 109m² restaurant at Shop 2, 38 – 46 Albany Street, St Leonards for 6 + 6 years at $862.29/m² gross.
• Games Workshop Oz has leased a 65m² retail site at 91 Bronte Road, Bondi Junction for 5 + 5 years at $520/m² gross.
• Match Integration has leased 444m² of office space on the Ground floor of 63 Ann Street, Surry Hills for 3 + 3 years at $400/m² gross.
• Megaward has leased a 180m² office on Level 5, 845 Pacific Highway, Chatswood for 8.5 months at $333/m² gross.

National Property

Auction clearance rates (AFR Pg.50)

• Sydney’s auction clearance rate was 49.8% down from 56.7% over the weekend.
• The value of property sold was $88.4 million, well below the $167.3 million recorded the previous weekend.
• The most expensive property sold at auction was $1.875 million for a 5 bedroom house at 11 Eastern Avenue in Kensington.
• Melbourne’s auction clearance rate was 55.6% down from the 61.4% the previous weekend.
• Only $44.3 million of property was sold, well below the $148 million recorded the previous weekend.
• The most expensive property sold was $2.375 million for a 4 bedroom house at 29 Tennyson Street in Sandringham.

Hotel update (AFR Pg.49)

• In the year to date Asia Pacific’s revenue per available hotel room was up by 24%, compared with 6% in Europe, 2% in North America and 1% in the Middle East and Africa.
• Sydney’s occupancy rate in 2009 was 76% and the revenue per available room was $141. As at July 2010 the occupancy rate was 86% and revenue increased to $162.
• In Melbourne it is estimated the demand for rooms will take 12 to 18 months to catch up to the level of supply.
• In 2010, 1,845 rooms are expected to be released in Melbourne, followed by 110 rooms in 2011 and 215 in 2012.
• Revenue per available room in Brisbane rose by $11 to $134 over the year. The occupancy rate is 78% and no new supply is anticipated to be completed before 2012.
• Over the year the occupancy rate on the Gold Coast rose by 10% to 67% whilst revenue per room increased by $21 to $95.