XN000022-1980-05-22 — Page 3

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THURSDAY, MAY 22, 1980

+HOWEVER. IT WAS IN THE LATTER HALF OF THE YEAR THAT THE MAIN UPWARD PRESSURE WAS FELT, WITH THE RESULT THAT THE GOVERNMENT FELT OBLIGED TO INTERVENE BY ANNOUNCING EXTENDED RENT CONTROL MEASURES COVERING NEARLY ALL PRIVATE DOMESTIC PREMISES, MR FRY SAID.

SALE PRICES ALSO HIT NEW LEVELS, WITH AVERAGE INCREASES VARYING FROM 67 PER CENT TO 78 PER CENT OVER 1978.

SHOP SPACES

IN THE RETAIL SECTOR, 131 000 SQUARE METRES OF SHOP SPACE WAS COMPLETED IN 1979, SIMILAR TO EACH OF THE TWO PREVIOUS YEARS. SUBSTANTIAL INCREASES ARE FORECAST FOR 1980 AND 1981.

THE TREND OF PROVIDING SMALL UNITS IN MULTI-STOREY SHOPPING ARCADES IS RAPIDLY INCREASING AND FORECASTS INDICATE THAT SUCH SPACE WILL DOMINATE THE SUPPLY FIGURES OVER THE NEXT TWO YEARS.

VACANCIES AT THE END OF 1979 STOOD AT 148 500 SQUARE METRES, UP 21 PER CENT ON THE PREVIOUS YEAR AND REPRESENTING THE HIGHEST VACANCY SITUATION RECORDED SINCE 1975. THE COMMISSIONER EXPLAINED HOWEVER THAT ABOUT 50 PER CENT OF THIS WAS LOCATED IN BUILDINGS COMPLETED IN ONLY THE LAST THREE MONTHS OF THE YEAR.

OFFICE ACCOMMODATION

THE OUT-TURN IN OFFICE ACCOMMODATION AT 178 300 SQUARE METRES WAS THE LOWEST ANNUAL SUPPLY SINCE 1974. HOWEVER, IT IS EXPECTED TO IMPROVE CONSIDERABLY IN 1980 AND 1981 WITH OVER 275 000 AND 480 000 SQUARE METRES RESPECTIVELY.

A GENERALLY HIGHER STANDARD OF ACCOMMODATION IS NOW BEING PRODUCED, MR FRY SAID, WITH OVER HALF THE YEAR'S SUPPLY CLASS IF IED AS GRADE A, AND FORECASTS INDICATE THIS TREND WILL CONTINUE OVER THE NEXT COUPLE OF YEARS.

STRONG DEMAND REDUCED VACANCIES TO 78 700 SQUARE METRES, REPRESENTING ONLY 3.6 PER CENT OF THE YEAR-END STOCK, AS COMPARED WITH 6.5 PER CENT A YEAR PREVIOUSLY.

NOT SURPRISINGLY THERE WERE SIGNIFICANT INCREASES IN OFFICE RENTS ACROSS THE BOARD, WITH AVERAGE RENTS RANGING FROM THE LOWEST GRADE C AT $35.05 TO THE HIGHEST GRADE A AT $95.82.

TOWARDS THE END OF THE YEAR CONSIDERABLY HIGHER RENTS WERE BEING ADVERTISED, ALTHOUGH LITTLE EVIDENCE COULD BE FOUND TO SUBSTANTIATE SOME OF THE EXTRAVAGANT CLAIMS BEING MADE.

FACTORY FLATS

MR FRY POINTED OUT THAT POSSIBLY ONE OF THE MOST IMPORTANT FEATURES HIGHLIGHTED IN THE REVIEW WAS IN REGARD TO FLATTED FACTORY ACCOMMODATION.

/A RECORD