The latest research from m3property, an Australian real estate valuation consultancy, shows that Melbourne’s office market will rise further in 2020, benefiting from downward pressure on vacancy rates and rising pressure on rents. According to director of m3property (AndrewDuguid, the continued influx of overseas investors will be a key factor driving further reductions in commercial real estate yields in the two capital cities. Duguid noted that Melbourne Capital Investments has begun to shift from the retail sector to the office and logistics sectors. He “Domestic funds continue to increase investment in commercial office buildings, and offshore capital is also extremely active.” “This is because Australia is considered to be a low sovereign risk, relatively healthy economy, strong infrastructure investment, and good population growth. Destination. “Duguid said that although the historical yield of commercial real estate in Australia is currently at a relatively low level. However, compared with the core markets of Europe and Asia, the yield of the commercial office market in Melbourne is From 4% to 4.5%, it has a more obvious comparative advantage and greater attractiveness. “By 2020, due to limited new supply, Melbourne’s vacancy rate will further decline, which in turn will help price performance.
