Perth’s CBD office market turned the corner with prime face rents up 1.1% over the quarter. Prime incentives have trended down since Q3 2018 contributing to 10.2% net effective rental growth over the past 12 months.
Melbourne prime CBD office rents increased 3.0% over Q2 2019 and have grown 5.0% YTD. Incentives ticked down over the quarter but remain at 27% despite extremely low vacancy.
Sydney, Brisbane and Adelaide prime CBD office markets recorded growth over the quarter of 1.2%, 1.0% and 0.5% respectively. Rents in Canberra were flat.
Yields were static in most markets over the quarter, exceptions being Perth and Canberra where prime CBD office yields compressed 15 bps and 23bps respectively.