In its Global Market Perspective report for Q315, Jones Lang LaSalle (JLL) notes that the notional capital values of prime office buildings in Sydney have risen by 9.5% over the last year. The prime yield is 6.0%, or a 2.97% premium to the yield on 10-year government bonds. Over the last year, rents have risen by 2.4% and net absorption (on a rolling one year basis) has been 2.4%. The vacancy rate is currently 8.8%. Taking into account completions of new projects prior to the end of 2016, the supply pipeline is 5.2% of current stock. JLL considers that conditions will likely favour landlords in 2016.

Source : November 2015/JLL/Sydney/OFF