There has been no change in yields over the quarter in all states with the better quality centres remaining firmly priced. Knight Frank has identified approximately 320,000 sm of major deals across Australia in the quarter, only 15% down on 01Q2. The performance of the industrial market is always closely correlated to the strength of the economy and the improvement in demand over the last 6 months has reflected this. Almost 200,000 sm of major pre-commitments have been recorded in the quarter, the highlight being Murray Goulburn’s new 80,000 sm facility in Melbourne
This is driving solid pre-commitment activity and is also halting rental growth in many cities. In Brisbane & Melbourne in particular, pre-commitment rents are at or below rents for existing buildings in the same areas. Every Property valuation methodology But like the office market, industrial tenants have become a little more nervous about the short term outlook for the global and Australian economy and in recent weeks have adopted a “wait & see” attitude on their short term space requirements.
Shanghai outperformed the national average, rising by 10.3%, due mainly to the rapid expansion of capital investment by US and other international companies. Despite the growing concern regarding the economic recession in the US, and the impact of the September terrorist attack, Shanghai will maintain strong economic growth and continue to attract substantial foreign investment since China entered the WTO in November 2001. New completions for the first nine months amounted to 6.75 million sm, up 29.5% from the previous year. Total transactions reached 4,209,800 sm in 2Q2001, going up by 19.55% compared with the previous quarter. With active demand, residential prices rose 2.8% compared with the first two quarters.
Average residential rents for serviced apartments in Shanghai continued to increase steadily in Q2/2001, up 2.3% compared with the same period of the previous year. 1-bedroom serviced apartments command an average monthly rental of about US$2,100, while the rent for 2-bedroom units cost $200 per month more.