While the commercial sector internationally has had modest gains over the quarter due to measures in Europe and a brighter outlook in the United States, the flow on effect of this is now being felt in the Oceania market place, it says.
For Australia the results for the first three months of 2012 are very similar to the last quarter of 2011, showing that the market remains stable, with tenant demand and available space remaining unchanged from the last quarter and little change in the outlook in the rental outlook.
By comparison, the market in New Zealand has been more upbeat with a rise in demand from occupiers for the first time in nearly a year and the rental picture finally starting to stabilise after several months of negative readings.
‘The Oceania region is still an attractive market place for international investors, which is being shown in these recent survey results. Australia and New Zealand continue to show a healthy market place well ahead of the northern hemisphere, which is only just starting to show signs of repair after the global down turn,’ said Kaye Herald, RICS Asia Pacific managing director.
In Australia, tenant demand and available space for occupation remained unchanged from last quarter, with both net balance readings moving closer to the neutral reading of zero. Accordingly, the rental outlook remained unchanged. The net balance was zero for the second consecutive survey indicating that there has been no change in rental expectations for the past six months.
Investment enquiries jumped in the first three months of the year from -8 to +22 and transactions are expected to continue rising in the next quarter.
‘Capital value expectations remain flat, but could begin to pick up in the coming three months if the surge in investor demand is anything to go by,’ explained Herald.
A slightly more upbeat story is visible in New Zealand. Demand from occupiers at the headline level rose for the first time in nine months, but did so most notably for office space. Available space also rose on the quarter. Significantly, the rental picture looks to be stabilising after several quarters of decline.
On the investment side there has been a pickup in investment enquiries, with the net balance rising to +17. For the meantime, capital values are expected to remain broadly stable, but with future investment transactions also turning positive, there could be some upside to values going forward.
