The key point coming out of Wednesday’s Illawarra Property Council Outlook Luncheon was that the region well and truly has its ‘Mojo’ back and is open for business.
MMJ Wollongong was again the major sponsor and supporter of the event with Commercial Leasing Director, Michael Croghan the key presenter for the third year running.
Mr Croghan said “In my view, the Illawarra has held its own with total occupancy of office space not moving forward nor back. Whilst the PCA statistics reflect an increase in vacancy a number of key leasing deals have been completed very recently (yet to flow into the statistics) as well as outside the CBD (again not included).”
In terms of the Commercial & Investment markets it was noted that demand has increased for good quality assets. “The ‘Positive Spread’ between return on investment versus 100% borrowing is one of the reasons the commercial investment has been, and will remain, strong.”
In terms of what the next 12 months will hold, Mr. Croghan says that “we are likely to see foreign investment continue to increase with significant regional investment also providing a positive catalyst”.
Finally Mr. Croghan finished with an overview on the residential market, summing it up in one word… Strong! With median house prices increasing in all three LGA’s (Wollongong 12.9%, Shellharbour 9.9% and Kiama 12%) based on figures supplied by Dr Andrew Wilson from the Domain Group.
These residential trends were closely aligned with Sydney (14.1%) and were above the Australian Capital City average of 7.1%
These figures were further supported with a rise in dwelling approvals from 1,479 in the Illawarra District at September 2012 to 2325 in September 2014 which is a similar trend being experienced nationwide. “2014 saw a record high total dwelling units approved across all regions, which is a contrast for a nation that has underbuilt over the past decade” Nick Proud, Residential Development Council.