A growing Queensland economy and more than $44 billion of public and private sector infrastructure projects are believed to have contributed to a 60% increase in office sales within Brisbane's CBD last year.

Research from Colliers International reveals about  $2.35 billion worth of office sales were transacted in the city during 2018, compared with about $1.47 billion in 2017.

According to Colliers, there has also been an increase in cross border investment from offshore buyers, which rose from $891 million in 2017 to $1.77 billion in 2018.

At a glance:

• Latest Colliers Brisbane CBD Office Report shows office sales increased by 60% from 2017 to 2018.
• The report indicated the CBD has experienced 46,931 square metres of positive net absorption during 2018, and a total of 102,120 square metres over the past three years.
• Prime grade vacancy in the CBD at the end of the year was at 10.0%, whilst secondary grade vacancy was at 16.9%.  

Colliers International National Director of Capital Markets Jason Lynch said there were positive signs for investors in 2019.

“Tangible signs of a leasing market recovery in Brisbane, supported by the improved Queensland economic fundamentals, the large infrastructure pipeline, and strong interstate migration has increased the prevalence of counter-cyclical investors," he said.

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“Constrained supply of new developments is expected to continue in 2019 on the back of low-risk appetite from Australian developers holding back the construction of new developments until pre-commitments are confirmed.

"This is positive from an investor perspective,”

The report indicates Brisbane CBD experienced 46,931 square metres of positive net absorption during 2018, and a total of 102,120 square metres over the past three years, equating to an average 34,040 square metres per annum. 

There have also been 139,613 square metres of withdrawals and 209,290 square metres of new supply indicating a total positive supply of 69,677 square metres over the past three years.

Colliers International Research Manager Karina Salas said growing white-collar employment in the CBD meant there would likely be increased leasing activity and tighter vacancy in the years ahead.

"According to Deloitte Access Economics, the white-collar employment market in the Brisbane CBD is set to gradually grow at an average of 2,820 persons per year over the next seven years to 2025. 

“We estimate this will result in absorption of circa 30,000 square metres of additional office accommodation annually.

“With no new supply of premium assets available until 2022 and circa 17,400 square metres of new leases of vacant premium office relocating in 2019, we are forecasting a reduction in vacancy rates from the current 10.4% down to levels below 6% by 2020."

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