The Parramatta CBD continues to be the standout office performer across the country. Record low vacancies have resulted in rents continuing to increase which makes assets in this location highly sought after putting further downward pressure on yields. While there is a long pipeline of new supply still to enter this market, those assets coming to market in the next couple of years enjoy close to full commitments which will add to the current working population. Investment into infrastructure projects are high and the quality and scale of new development for Parramatta CBD are unlike any other regions which creates new opportunities for this world class city.
Overall absorption of stock has started to slow across the Parramatta CBD over the last 12 months. Despite an uptick in employment demand, limited available stock has been the major hinderance for this continued increase. In the first six months of 2019, take up of 2,094sqm was recorded the bulk being in B grade assets given the limited availability in A grade premises. Keeping vacancies reducing this period has been the no change in supply with no new or refurbished premises adding to the stock count as well as no withdrawals.