•The end of 2018 marked the return to positive effective rental growth for all major CBD markets across Australia.

 

•Sydney and Melbourne again outperformed in terms of rental growth but Sydney surged ahead in 2018 with annual prime effective rental growth of 14.6%, exceeding that of 2017. Melbourne finished the year at 7.4% growth. We are nearing our forecast cyclical lows for vacancy (Sydney, 3.5% - Melbourne, 3.1%).

 

•Adelaide recorded 5.1% prime net effective rental growth in 2018 with Perth and Brisbane ending the year at  2.4% and 2.1% respectively. Perth started to witness some decline in prime grade incentives whilst Brisbane recorded face rental growth.

 

•The investment market remained strong in Q418 with 58 sales totalling $5.2b. Compared to 2017, 2018 recorded a slightly lower number of sales (-3% by value, -4.9% by count), more a reflection fewer sellers than a dearth of buyers. Sales volumes were still healthy: 235 sales totalling $17.3b. Yields largely remained flat over Q418.