Sydney, Australia
 

Sydney and its Commercial Real Estate Market are unique in many respects. Did You Know...

•   Sydney, located on Australia's south-east coast, is the capital of the Australian state of New South Wales and the country's most populous city. Sydney is one of the most multicultural cities in the world; it has the seventh largest percentage of foreighn born population in the planet and 30% of its residents are bilinugal.

•   The Australian economy ranks among the best in the world for reliance, and Sydney ranks ahead of Seoul, Hong Kong and Tokyo for business cost competitiveness, all while being considered one of the top locations in the world for quality of life. 

•   Sydney is the largest corporate and financial center in Australia and is one of the major economic hubs in the Asian Pacific region. Sydney generates about 25% of Australia's GDP, and its leading industries include business services, retail, manufacturing tourism, banking, media, and health. The city is home to the Australian Stock Exchange, the headquarters of 90 banks, half of the nation's top companies, and the regional headquarters of over 500 multinationals.

•   Sydney is an important tourist destination, with over 8 million domestic visitors and 2.9 million international visitors. Its infrastructure and transportation system are within the best in the country. Most of its residents travel by car, but Sydney is well served by extensive train, bus, and ferry networks. Kingsford Smith international airport is Sydney's main airport. 

•   Half of the population is between 20 and 40 years of age. The median age is 34, and 12% of the residents are 65 or older. The labor force is well educated; over 25% of its residents are currently attending an educational institution. The average annual income is $44,850.

•   Low unemployment rate economic growth, and high productivity output are expected to continue strongly into the future, which is likely to cause high demand in the commercial real estate market. The CBD is experiencing declining vacancy, high demand, limited supply, and slight rental growth. The North Shore district has an overall vacancy rate of 9.8% but is showing signs of recovery. 

•   In 2Q 2007, the Parramatta business district saw an increase in demand and rental rates, especially from the financial and insurance sector. Rental and capital values in Parramatta are expected to remain the same in the next 12 months. Absorption in Macquarie Park was high, and the vacancy level dropped to a record low of 3.9%. The industrial market had an absorption of 1.81 million sq ft in 2Q 2007, and the supply added to the market amounted to 1.97 million sq ft.