Stronger commercial property performance to bolster economy

Planned building activity for commercial property markets has strengthened providing the clear prospect for much-needed rising economic activity through 2017.

Latest ABS data reveals that the national value of the primary commercial property sectors of retail, office and industrial approved for construction over the November quarter surged to a new record high of $5.78bn

The primary or Prime Supply commercial development sectors have now recorded building approvals to the value of $15.35bn over the first 11 months of this year – an increase of 15.4 percent on the $13.30bn approved over the same period last year.

Retail construction to the value of $6.93bn nationally was approved over the first 11 months of 2016 for an increase of 10.7 percent compared to the same period in 2015. Planned office construction increased by 27.2 percent to $4.69bn with industrial building approvals up by 11.3 percent to $3.74bn over the same current year to date comparisons.

Sydney was the top performing Prime Supply capital city market over the first 11 months of 2016 with approvals to the value of $4.31bn closely followed by Melbourne $4.05bn, Perth $1.70bn, Brisbane $1.51bn and Adelaide $0.37bn.

Dr Andrew Wilson is Chief Economist for the Domain Group