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Vol 11. No.16

Economic Overview

	Current	+/-	Movement
$AUS/$US	90.19	-0.12
Cash Rate	3.75	Steady
90 Day Bill	4.24	-1.97
10 Year Bond	5.525	Steady
ASX 200	4750.6	-76.6

National Property

Residential update (SMH 23-24 Pg.7)

• According to the latest Westpac-Melbourne Institute Consumer Sentiment survey 3% of respondents anticipate a decline in home values this year.
• Sentiment towards property is at its highest level since 1994.
• The largest rise in optimism was recorded in NSW with 84% of respondents expecting house prices to increase this year, with almost a quarter expecting 10% price gains.
• Sydney estate agents auctioned more than 18,800 dwellings last year, totalling more than $10.2 billion in property sales. This is up on the 2007 and 2008 figures of $10.1 billion and $6.99 billion respectively.
• Clearance rates totalled 69% with 14,200 properties fetching a median price of $718,000, an increase on the $703,000 median price recorded in 2008.

National office update (SMH Business Day Pg.3)

• Industry sources are expecting large increases in office rents due to the lack of new quality supply.
• In Sydney, $1,400/m² is being asked for the top floors in Dexus Property Group’s $700 million office tower at 1 Bligh Street, Sydney.
• This rate is more than $250/m² higher than the top floor of Investa’s building at 126 Phillip Street, Sydney and the $300/m² higher than the penthouse office previously leased at Aurora Place at 88 Phillip Street, Sydney.
• Law firm Clayton Utz has pre-leased the first 15 floors of the 28 storey building located on the corner of Bligh, Bent and O’Connell Streets.
• In Melbourne, premium rents are approximately $550/m² and are anticipated to rise 10% to 12% in the next 2 years.
• Office space within 6 Australian cities is amongst the world’s 100 most expensive.
• Sydney climbed from 45th position to 23rd above New York, Brussels and Berlin.
• Other cities include Melbourne (86th to 53rd), Brisbane (29th), Perth (32nd), Canberra (73rd) and Adelaide (80th).