Office fringe markets in Melbourne and Sydney recorded stronger rental and capital value growth than their respective CBD markets in the 12 months to March 2018, according to Savills Australia’s latest research.
Sydney and Melbourne CBD office markets have been the prime beneficiaries of strong economic growth and investor interest during the past two years, with world-leading office market performance and capital value and rental growth consistently among the top 10 across all international markets during this period.
Shrabastee Mallik, Savills Australia’s senior analyst for Capital Strategy, said it appears that investors are now being priced out of these CBDs and their focus has turned to the relatively more affordable neighboring fringe markets, which enjoy similar market fundamentals.
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