Melbourne office boom and bust looms

Thursday, 5 July 2018

Via the AFR:

A $7.4 billion building boom in office towers, apartments and hotels in central Melbourne is raising fears the city may become a victim of its own success, with oversupply putting pressure on vacancy, rents and values.

Gross supply will increase by 170,000 square metres in 2019 and by 290,000 square metres in 2020. The 20-year average gross supply in Melbourne CBD is 120,000 sqm annually.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.