Commercial markets rising – good news for economy
By Dr Andrew Wilson (domain.com.au – 22 December, 2016)
Building activity for commercial property markets is showing signs of a revival which if sustained will provide a boost for a flagging national economy.
Latest ABS data reveals that the national value of the primary commercial property sectors of retail, office and industrial approved for construction over the October quarter surged to a new post GFC record of $5.52bn
The primary or Prime Supply commercial development sectors have now recorded building approvals to the value of $13.48bn over the first 10 months of this year – an increase of 11.9 percent on the $12.13bn approved over the same period last year.
Retail construction to the value of $6.2bn nationally has been approved so far this year for an increase of 8.0 percent compared to the first 10 months of 2015. Planned office construction has increased by 20.0 percent to $4.0bn with industrial building approvals up by 7.1 percent to $3.2bn over the same this year to date comparisons.
Sydney is the top performing Prime Supply capital city market this year so far with approvals to the value of $3.72bn closely followed by Melbourne $3.69bn, Perth $1.53bn, Brisbane $1.35bn and Adelaide $0.35bn.