•All major CBD markets witnessed prime net effective rental growth over Q318, except for Perth which remained stable.

 

•Sydney, Melbourne and Adelaide all witnessed strong prime net effective rental growth in the order of 3% over the quarter with Brisbane and Canberra showing more subdued growth.

 

•Sydney’s growth was fuelled more noticeably by a sharper decline in incentives over the quarter as opposed to face rental growth. In the case of Melbourne and Adelaide, prime net face rents grew strongly whilst incentives remained fairly stable. Secondary effective rents in Perth continued to decline q-o-q.

 

•It was another strong quarter for Australian office property transactions in Q318 with 54 sales totalling $4.5b. New South Wales accounted for over 50% of the sales activity in terms of value. Brisbane saw the second highest level of sales transaction value this quarter (following Sydney) at $1.2b over 7 sales. Yields remained generally stable over the quarter.