Issue link: https://viewer.e-digitaleditions.com/i/286104
Real Estate Services • Issue 3 5 NEWS O•ce space boom Office leasing in Sydney and Melbourne is forecast to soar to record levels in the second half of 2014, according to a new industry report. While the Sydney and Melbourne office markets struggled with high vacancy rates of more than 10 per cent throughout 2013, Investa Office's Leading Indicators & Office Demand report claims the recovery will result from low interest rates and renewed strength in global finance. Investa Office's General Manager of Research, Peter Carstairs, says, "Our research points to 2014 being a year of recovery, with some CBD markets already starting to gain momentum, while others will take longer to pick up." The Brisbane and Perth markets will be slower to adjust, he adds, because of the national economy's move away from strong reliance on mining services. Did you know … ? Did you know … ? The increase in value in investment home loan commitments from November 2013 to December 2013. Source: Australian Bureau of Statistics The rental yield for houses in Darwin, the Australian capital that showed the strongest return for investment, over the three months to January 2014. This compares with a rental yield of 3.9 per cent for houses in Sydney, 3.3 per cent in Melbourne and 4.6 per cent in Brisbane. Source: RP Data 6.2% 3% Strata law changes The biggest proposed changes to NSW strata law in more than 50 years were recently handed down by the NSW Department of Fair Trading. For tenants, the most striking changes will allow pets to be accepted in residential units and smoking on balconies to be curbed. Mark Lever, CEO of Strata Community Australia, says the most significant change for owners will affect their right to knock down older unit blocks and rebuild without 100 per cent agreement from all owners. "Currently, if you want to knock down and rebuild an old unit block, you need 100 per cent of the owners to agree," Lever says, "but the proposed change will lower the approval threshold to 75 per cent of owners. "NSW will be the first state to reduce the threshold and all other states will be watching how it goes."