An extract from Business Speculator A recent interview with Greg Paramor from Mirvac Group.
The full interview here. http://www.businessspectator.com.au/bs.nsf/Article/KGB-INTERROGATION-Greg-Paramor-GUVJA?OpenDocument&src=spb
Back in.. and sorry to go back into history but it's always a great way to look at the future I always find, back in 1990 with the overbuilding, commercial values fell up to 60 per cent. That was for CBD offices around Australia.
Shopping centres didn't move. Shopping centres were rock solid. There was basically no change. They were keenly sought after. They performed well right through that period and there was basically no change.
Residential property came back probably around 20 per cent across the board and higher in some areas and industrial property was probably somewhere between 10 and 25 per cent reductions – once again depending on the quality of the property. I don't see that being apparent at the moment unless the economy takes a huge dive. We still have no vacancy to speak of in Brisbane and Perth for example. We still have very strong demand and we're still achieving strong rent growth albeit it that we see that paring back but we've had rent growth in Sydney over the last 12 months of anything from 20 to 30 per cent across new leases that we've been writing.
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