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Vacancy rates remain low in Parramatta, with tenants attracted to the high-quality facility.
The western Sydney city has recorded the country’s high net absorption rate of any office market, with the ongoing demand for stock in the area, the latest Ray White Between the Lines research outlined.
The city has new supply being added, and the ongoing investment ensures Parramatta remains a competitive location for tenants, owners and investors.
The city has seen the largest influx of new supply to the market since 1990, Ray White’s Peter Vines said.
“The completion of 62,174 sq m, which was stage four of the Parramatta Square development, was heavily pre-committed by the state government and was offset by three withdrawals totalling 10,528 sq m,” Mr Vines said.
“With net absorption recorded at 47,201 sq m, the slight mismatch in supply and demand resulted in the growth in total vacancy from 2.8 per cent in July 2019 to 3.2 per cent in January 2020.
“Given the sizeable addition to this market, this tight vacancy position continues to highlight the strong ongoing demand for Parramatta accommodation.”
Going forward, Mr Vines expects this trajectory to continue with the new supply expected to enter the market.
With limited availability of stock, secondary assets have benefited with an uplift in interest, Ray White’s Joseph Assaf said.
“While affordability has been questioned for the Parramatta prime markets, it remains competitive compared to the Sydney CBD which has also been impacted by low vacancy, keeping prime rents upwards of $1,000 per sq m,” Mr Assaf said.
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