Commercial Developments in Australia

Commercial developments vary across the country with some similarities in trends

  • Some areas are experiencing the same losses and decreases in development of certain commercial areas
  • Retail development is a hugely popular investment that has reached record levels
  • Industrial development is less risky and keeps land prices and values steady

Commercial developments in Australia vary among the different areas of the country. Sydney remains the focal point of development despite the declining stock availability due to the Metro rail project. Rents for office space, residential, and others will increase as the vacancy rates fall. Overall, many economies are experiencing loss while recovering from losing car manufacturing, mining, and dealing with mining demands.  Despite these issues, some of the development sectors are experiencing an increase in demands and transactions.

Retail development is currently a popular investment with transactions, this type of development reaching record levels over the past few years. It is estimated that this industry will soon experience constraints from the falling economies and lower household incomes. Industrial property development is matching the demands put on it with the availability of land and development competition. This combination of available land and development competition is what makes the industrial development less risky while keeping land prices, rent, and property values steady. There are many current commercial developments being completed with many others being planned throughout the country.

Loss of some industries and the demands of others impact commercial developments

  • The loss of the car manufacturing industry has decreased development demands in place like Melbourne
  • Mining demands have put a damper on areas such as Brisbane with other industry bringing possibilities for new developments
  • There are many ups and downs in commercial development and trends are expected to continue

The loss of the car manufacturing industry with its associated suppliers has led to a decrease in the demands of new developments in places like Melbourne. Places such as Perth are experiencing an economic collapse due to the end of the mining industry. This collapse has led to the loss in demand of new developments where property values and rent continue to fall. Brisbane, on the other hand, is suffering from the demands of its mining industry and mining-related companies. Much of Brisbane’s office space was occupied by mining companies and mining-related companies. Brisbane is expected to experience some benefits from an increase in tourism, education services, and agriculture. So, while the mining industry places harmful demands on Brisbane, the area is expected to experience an increase in other industries that will have potential increases in its development demands.

Overall, Australia is experiencing many ups and downs with its commercial developments. This can be seen throughout the various areas, their economies and the demands, lack thereof, for new developments. Many things impact the commercial developments in Australia, such as the availability of land, the local economy, and development competition. So, while some areas are experiencing a decrease in demands they are seeing increases in retail property developments as well as some industrial developments. These trends are expected to continue, while others are expected to change over the next decade. The outlook for commercial development seems to be good as there are still increases in retail and industrial developments while residential and office developments are decreasing. Australia’s commercial developments are ever changing and the country may see a change in these trends despite the outlook being a decrease in the development of commercial spaces across the country.