Australia’s growing e-commerce and retail market, as well as the upcoming federal election, are expected to influence property decisions this year.
“The Reserve Bank of Australia has indicated growth in the Australian economy of up to 3.5 percent in 2019,” said Andrew Ballantyne, Head of Research in Australia for JLL. “This is going to lead to business growth and demand for offices, plus wage growth which, given Australia has a workforce of 12.5 million people, will be the catalyst for a rebound in discretionary retail spending.”
Coworking is expected to continue shaping the market for 2019. New office operators increased by 25% last year, so research indicates that competition will grow even stronger.
Despite this, larger workspace brands will struggle to provide niche amenities to certain audiences.
For example, Sydney-based operator +U has seven floors of space dedicated to specific industries, such as beauty and wellness, marketing, startups, and more.
Joint ventures are also expected to increase, with developers pairing up with capital partners to get a headstart in Australia’s big industrial markets.
Sass J-Baleh, head of industrial research for JLL, says that it expects more developers to purchase land to create partnerships with investors.
Recently, the food and restaurant market has grown tremendously, but worries of oversaturation have come to the forefront. Despite this, JLL Australia says that the speed of growth in this sector is good news thanks to younger generations willing to spend more on eating out as opposed to Baby Boomers and other older generations.