Supply And Demand For Real Estate

2508 Words Mar 30th, 2015 11 Pages
INTRODUCTION
Within the property industry, the ever changing nature of the real estate market is affecting supply and demand for real estate. As a result, a key issue stemming from reducing demand is increasing office vacancy in Brisbane’s central business district which reached a high of 15.6% in January 2015, according to the Property Council of Australia (2015). Current literature suggests that the lack of demand can be attributed to negative net absorption by the government and resources sectors, office over supply, low business confidence and high unemployment rates (Property Council of Australia 2015). This is making office space difficult to lease, increasing financial stress on property owners and changing how the office investment
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However, the Property Council contained an additional article on office vacancy with figures at 15.6% in February 2015 which suggests office vacancy is still an increasing issue.
Intended Audience:
The Property Council, within its members, accounts for the nations, major investors, property owners and developers as well as the industry’s professional service and trade providers. This suggests the information is consumed and accessed by a broad range of groups and not only companies who are investing into the market for the purpose of running their businesses. The information is factual only, attracting the use of professionals in the property industry which ensures it is a credible source.
Summary of Important Points:
• The vacancy rate in Brisbane’s CBD office market has reached a new time high of 15.6% over the past six months.
• Reinforces the need for emphasis on the renewal and significant conversion of older office buildings across Brisbane’s CBD.
• Brisbane’s Fringe market was also subject to an increase in office vacancy over the past six months and saw levels reach their highest since July 2002.
• High vacancy rates are also attributed to the impact of the Queensland Government’s continued withdrawal from leased space along with the mining sector’s revaluation of its office space requirements.
• Brisbane’s future stock pipeline will enter the

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