Skip Ribbon Commands
Skip to main content

News release

Sydney

Commercial office sales total $2.455 billion for the first half of 2010, achieving nearly two-thirds of all sales in 2009

National commercial property sales for office, retail and industrial combined total $4.878 billion so far this year


SYDNEY, 30 JUNE 2010 – Australian office sales total more than $2.455 billion at the mid-year point, already nearly two-thirds of the $3.916 billion total sales figure recorded for the whole of 2009, according to Jones Lang LaSalle’s first half 2010 national sales figures.
 
In particular, office sales in New South Wales total $1.679 billion, almost double total office sales in the state in 2009.
 
Combined national commercial property sales for office, retail and industrial has reached $4.878 billion at the mid-year point, representing 60% of all commercial sales in 2009.
 
Australian Head of Capital Markets for Jones Lang LaSalle,
John Talbot, said, “These sales figures leave little doubt the 2010 office market will comfortably exceed 2009 figures – already we have reached more than 62% of the office sales volume recorded for the whole of last year.  
 
“Office sales in New South Wales have provided the biggest boost to the national office market, contributing more than 68% of all office sales, bolstered by the sale of Aurora Place and the development deal of 163 Castlereagh Street.
 
“Confidence has returned to the property investment market across all asset classes but most notably in the office sector as evidenced by this significant increase in transaction volumes.
 
“While 2010 figures are still well behind the record pre-GFC office sales of $7.632 billion we saw in 2007, the strong sales volumes in the first half of this year look very positive.
 
Particularly in the context of renewed global economic uncertainty linked to European sovereign debt risk, the Australian market remains a standout stable investment destination for local and overseas groups.
 
“Australia is also ranked as the No.1 transparent real estate market in the world based on the latest Jones Lang LaSalle Real Estate Transparency Index, which, coupled with the greater certainty that comes with increasing transaction volumes, increases the attraction of our market for major overseas players,” he said.
 
Jones Lang LaSalle currently has nearly $1.5 billion worth of office property on the market for sale around Australia. Mr Talbot said, “Despite some nervousness that has arisen in response to renewed global uncertainty, we continue to be encouraged by the depth and seriousness of market interest in each offering in which we are involved.
 
“It is also pleasing to see a diverse mix of active investors bidding on the available offerings – private groups have been active for a while but so too are the syndicators, the REITs and a number of the wholesale funds. Of course the overseas groups continue to be very active in this market,” he said.