Australian commercial property market 'broadly flat'

The commercial real estate sector in Australia stabilised in the final quarter of 2011, with capital value growth, investor demand and occupier and owner sentiment all "broadly flat".

According to the Royal Institution of Chartered Surveyors (Rics) Oceania Commercial Property Survey, vacancy rates in the nation fell and, despite tenant demand continuing to slide, it did so at "a noticeably slower pace" in the final three months of last year.

Kaye Herald, managing director of Rics Asia Pacific, commented: "The expectations for the first quarter of this year seem to suggest that this stability may result in some better results going forward."

Demand from investors for Australian commercial property remained in negative territory, although the organisation stated there are clearly fewer fluctuations on this side of the market than there have been previously.

Earlier this month, the Property Council of Australia revealed that vacancy rates in offices in the country's main central business districts fell to 7.9 per cent in the six months to January 2012, bringing them to their lowest level in three years.

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