Just attended a press briefing by CB Richard Ellis in Shanghai on cross-border transactions in various property markets.
One interesting nugget came during a presentation by CBRE’s regional director of research for the ‘Pacific’ (that is, Australia, New Zealand and the Pacific Islands) region, Kevin Stanley.
He produced some figures that showed office property growth rates in Western Australia cities like Perth and Brisbane going off the charts. Brisbane grew 27% while Perth went up 20% (Sorry, I think it was year-on-year but I could be wrong).
Growth rates will continue to be high if things go as expected; Stanley put projected growth rates at 30%. According to him, the market is still in the accelerating growth phase, but the next four months should see a slight slowdown.
China, of course, is behind this monstrous growth.
“China has had a massive impact on the growth situation. The commodities sector is at a record high level both in terms of prices and volume,” Stanley told me after the presentation. “Two and a half years ago, vacancy rates were 13% — now they are at 2%.”
He said that Australian companies were taking up a lot of the space, while global firms were also significant factors, because of the globalization of the commodities supply chain. He placed the beginning of the growth trend at 2002.
See also: Chalco’s recent deals to develop a bauxite mining site in Queensland, Australia-China trade levels, The Daily Reckoning Australia’s analysis of China’s commodity demand — its ‘new Silk Road’