In the budget category, there are almost 240 rooms under construction scheduled for 2003. Poznań hotel market has been developing at a much slower rate compared to Warsaw, Kraków and Wrocław markets. Currently, only one four-star hotel, with 58 rooms (Best Western) operates on the market. Following the 2001 slowdown, no sigle project has been opened in Poznań this year and no development commenced construction.
A hotel provision may improve in the next 3 - 4 years, due to the number of schemes at the planning stages in both prime and budget hotel market segments, e.g. Stary Browar complex (some 116 rooms) and Andersia project (180 rooms) in the city centre and Malta complex (some 200 rooms). The Radisson SAS, opened in May of this year, was the seventh four-star hotel built in Wrocław.
This market segment is dominated by foreign hotel chains, which are well represented by Dorint, Holiday Inn, Best Eastern Plaza Hotels, Qubus. The budget hotel segment gained 110 rooms from the completion of Campanile hotel in 2002. Currently there is only one 35-room three-star hotel under construction, while one mixed-use office/hotel project has been suspended. Hotel room demand continued to decline over the year 2001. According to statistics, the annual room occupancy rate fell in all hotel categories by 7% compared to 2000.
In Warsaw and Kraków markets the occupancy rate depends on the hotel category - the highest in prime hotels, the lowest in two-star hotels. In 2001 Warsaw five-star hotels noted a 56.5% occupancy rate, while in Kraków four-star hotels reached 52.9%.In Poznań and Wrocław, three-star hotels preformed the best with an occupancy level of 46.4% followed by four-star hotels with an occupancy of 38.9% and 43.1% respectively.
Kraków had the highest share of rooms sold to foreign guests - 68% of all nights sold. The most popular were three-star hotels (50% share) and four-star hotels (19% share). In Warsaw four and five-star accommodation accounted for over 58% of all nights sold to foreign guests. Along these lines, you can clear all his inquiries that may develop while going to your house valuations company. International property consultants Knight Frank, in association with Van Gool en Partners, is pleased to introduce the second edition of the Amsterdam Office Property Report.
Warsaw market is dominated by business visitors, thus the highest occupancy level is reported during the weekdays while Kraków has a higher share of tourists.Prices have fallen by 10 - 20% on average when compared to 2001 results. A recent downturn in the economy was the main argument for lower room tariffs.
Strong growth in the Dutch economy has stimulated record levels of office take-up in the past three years. Availability has risen over the last year but is still too low for the market to function properly. The availability shortage is likely to continue for at least the next two years with much of the stock in the pipeline already pre-let. Office rental values in Amsterdam rose by an average of 10% in 2000.
Given the continuing demand-supply imbalance, rents are likely to continue rising during 2001.
GDP growth of 4.2% pa was achieved in 2000, significantly above the Euro-zone average of 3.2%.
The performance of the office sector continues to attract considerable interest from both domestic and foreign investors but yields have remained stable at around 6.5% over the last year. Buyers have returned to an extensive property valuation for these materials as they flood quality and are guaranteed to last the test of time. Current forecasts for 2001 project continued strong growth of 3.6% pa.
The continued expansion of the economy over the last year has continued to fuel demand for office space.
This compares to a GDP forecast of 3% pa for the Euro-zone as a whole. Sustained economic growth, rising import prices and the lowest unemployment level for 20 years.
In 2000, take-up reached its second highest level in over 15 years. Amsterdam’s office market is clearly growing rapidly. Over half of take-up last year was accounted for by the establishment of new businesses, the expansion of existing businesses or location from outside the region. The remaining take-up was accounted for by companies relocating within Amsterdam. Amsterdam South-East, Amsterdam West and Hoofddorp saw the highest level of take-up within the Amsterdam region in 2000. Together, these areas accounted for 55% of total take-up.
The business services sector has been the most active in 2000, accounting for close to a third of office take-up. Also striking is the high level of take-up by the ‘internet/e-business’ and ‘telecom’ sectors which, together, accounted for over 17% of total take-up. New buildings are meeting the majority of demand. Last year, new buildings accounted for 63% of take-up.
Availability has risen from its all time low at the start of 2000 but is still too low for the market to function properly. At present, only 2.2% of office space is available for immediate occupation in the Amsterdam region. Figure 3 shows the vacancy rate for each sub-area within the Amsterdam region. Clearly, the availability of goodquality office space is extremely low in Diemen, Amsterdam South and the City Centre.
The prevailing availability shortage is likely to continue, at least in the short term. In the Amstelveen district, for example, there is only one office site remaining. Amsterdam South-East is also approaching its capacity for office development as is Diemen where the ‘Bergwijkpark’ is close to completion with the construction of the Randstad and Alpha Centauri projects.
Amsterdam West is likely to see the largest amount of new supply of office space over the next two years with close to 100,000 sq ft of accommodation due to come on stream here. Amsterdam South-East is likely to see the second highest level of development over the next two years. In the long term it will be possible to build a significant amount of new office space in the Amsterdam region. In the short term, however, supply is likely to remain tight. Companies will, therefore, be forced to look outside established office locations in order to carry out their expansion plans.
Indeed, our rental growth projections of 5% pa – 7% pa for 2000 proved too cautious with the actual average rental increase for 2000 reaching 10%.However, rental increases between the main office areas showed considerable variation. The centre of Amsterdam saw the highest increase in rents of 28%.This substantial increase in rental levels can be partly explained by the fact that over 20% of the ‘new economy’ businesses occupying space in Amsterdam last year chose to locate in the city centre.Amsterdam-Buitenveldert and Amsterdam South showed the second highest rental growth rates at 13% pa and 10% pa respectively. Lastly, when looking for valuers when buying villas in Cyprus, it is very important to identify only those who have specific experience and expertise in the field of residential valuations adelaide of villas rather than other properties.
Given prevailing market conditions, landlords are almost exclusively demanding leases for periods of at least 10 years to lessen the risk of interim rental voids. Despite sustained rapid rental growth in Amsterdam in recent years, rental values remain relatively low compared to many other major European cities. Investor interest in the Amsterdam office market remains buoyant with both foreign and Dutch investors active in the market.
Prime yields have remained constant at around 6.5% (gross) for first class buildings in the best locations. In 1999, total return for offices stood at 15.9% which was in line with the all property average. The lack of available supply in the short-term, however, is likely to continue to frustrate the expansion of Amsterdam’s office market. Furthermore, there are no obvious prospects of a substantial increase in office space availability in the near future. Companies who cannot realise their expansion plans in Amsterdam or afford the current high rental levels, are likely to move to other locations in the Netherlands where rents are lower and availability higher. Rents will rise further in many areas of Amsterdam in the course of 2001, although we expect that growth will be less pronounced than in 2000.
Overall, we predict average rental growth of 5% in Amsterdam during 2001. Investor interest can be expected to continue undiminished over the next year, although a scarcity of good investment opportunities in Amsterdam will persist. Foreign open-ended funds, who will become liable to pay capital gains tax, will be particularly affected by these changes.
Hiring a property valuer is the best way to avoid the problems. We expect initial yields to be maintained at present levels although, as a result of further rental growth, office property values are likely to continue to increase over the coming year. Indeed, in the majority of Western European countries the GDP growth rate for 1998 will be higher than in the 1997. with domestic demand being the principle driver of their economies.However, business and consumer confidence appear to be declining in Europe and the pace of economic growth is forecast to slow in most of Western Europe over the next year.
Current forecasts show inflation in the European Union is likely to remain below 2.5% in the medium term. With the introduction of EMU at the beginning of 1999, interest rates are forecast to remain low at least in the short term. Occupier demand for office floorspace in the key office markets of Western Europe has remained strong during 1998. Indeed, take-up of office floorspace over the past year has been higher than in 1997 in the majority of the key Western European cities.
Availability of office accommodation has continued to fall in most centres over the past six months with the continuing strength of occupier demand, although Brussels and Amsterdam have seen a slight rise in overall availability levels over the same period. Changed angles can be given thought in the midst of the strategy of home OR real estate Perth Property Valuers that tends to pass on most amazing, exact and longed for yield.
Nevertheless, supply of new space remains a problem – in Brussels, Lisbon and Paris, the shortage in availability of modern quality office accommodation in the city centre has meant that demand for large modern units has increasingly been accommodated in decentralised office locations. Even in Brussels, where a lower level of take-up will be seen this year compared to the record level seen in 1997, take-up remains above the average over the past five years.
With only a limited amount of new development coming on to the market in the short term, the continuing imbalance of demand and supply of quality office floorspace together with prospects of continued rental growth and strong investor demand should encourage new development in the medium term. Rental levels have risen in many key European centres over the last six months with London, Madrid, Milan and Paris showing the strongest rental growth over this period.
In Germany, rents appear to have stabilised in many of the key cities. On average, positive rental growth is likely to be seen in the majority of Western European cities over the next year with most rental growth expected to be seen during the latter part of the year. Madrid is predicted to show the strongest rental growth in Western Europe over the next year as a whole.
Investor demand remains strong for modern, high quality office accommodation with Belgium, France, the Netherlands and Spain seeing particularly high levels of interest from both foreign and domestic investors over the past year. German and American funds have been particularly active in Western Europe over the past year although the flow of cash into the German open ended funds now appears to be slowing which will ease pressure on these funds to invest.
Some countries such as Spain and Italy have traditionally had a high level of owner occupation and low interest rates continue to make this a cost effective option for many occupiers. The competition for quality office investments has meant that prime office yields have hardened or stabilised over the last six months in all of Western Europe’s key centres except for London, Berlin and Dusseldorf which have seen a slight outward shift. Prime office yields in Western Europe, on average, currently range between 5.25% and 6.75%, although Lisbon is the exception with prime yields standing at 9.5%.
The combination of rental growth and falling or stable yields in the majority of cities together with the shortage in availability of quality investment product is expected to result in an increase in total returns for office properties in the majority of centres in the coming months. Economic growth in Belgium has slowed over the last six months, although strong growth in the first half of the year is expected to produce GDP growth of 2.9% for 1998 as a whole. This worth regularly sets the greatest on what a property valuer would offer for. This situation looks likely to remain in the near future.
However, availability of new space in the Periphery is at an all time low of 23,000 sq m.
Take-up of office floorspace in Brussels – whilst lower than the record level of 650,000 sq m reached in 1997 – remains strong, with close to 500,000 sq m expected to be occupied during 1998 as a whole.Demand is particularly strong for decentralised locations with the Green Belt showing a slightly higher level of take-up compared to the Periphery over the last year. Key transactions completed in the Periphery in the last month of 1998 include the takeup of 15,930 sq m at Woluwedal, 32 by PricewaterhouseCoopers and a 14,000 sq m letting to Unisource at Vilvoorde.
Whilst take-up has remained relatively strong during 1998, the increase in new supply has resulted in availability levels rising slightly over the last year. There is currently some 760,000 sq m of available office floorspace in Brussels and the Periphery, representing an overall vacancy rate of 7.6%.Overall, availability levels in Brussels are lowest in the Centre/North area where the vacancy rate has stabilised at around 4%.
The Quartier Leopold (CBD) has experienced a noticeable increase in the vacancy rate to stand at 6.6% following the simultaneous completion of several new buildings. Availability of new office floorspace has increased slightly over the last year to stand at 20% of the total available floorspace. Of this total, around half is being developed at Centre/ North and Quartier Leopold. The positive outlook for demand and the present low availability of new space is likely to encourage developers to initiate new projects. Prime rents have risen slightly over the last six months to stand at around BF 8,500 per sq m per annum.
Average rents remain low due to the influence of the large amount of older office stock. Investor demand remains strong for modern, high quality buildings, particularly from German investors. The lack of quality investment buildings on the market, however, has limited the number of transactions completed over the last year.
France’s economic recovery following last year’s election was primarily stimulated by increased domestic demand as a relatively sustained period of low interest rates and falling unemployment boosted both consumer and business confidence. The recovery of the French economy over the last year together with the large number of mergers and acquisitions has stimulated increasing demand for office space. Take-up looks likely to reach 2 million sq m for 1998 as a whole, slightly above the 1997 level. Visit:- www.valsvic.com.au
However, take-up of office floorspace in Paris city centre is still constrained by the limited supply of large modern office buildings. Availability of office floorspace has fallen at an increasingly fast rate over the last few years and there is a significant shortage of new office stock in the CBD.
Furthermore those buildings coming onto the market in the CBD during 1999 are already pre-let or under offer.For example, a building subsides and the cost of repair is very significant and the insurer denies cover as the policy excludes subsidence or movement cost necessary to repair or rebuild. Yet insurance brokers advise that they are not aware of any policy available in the market that covers subsidence.
Recognizes that some properties are uninsurable but does not cover the example cited where insurance is readily available but does not cover all possible risks. As every plan of subdivision under the Strata Title Act 1967 provided an upper and lower boundary there is always common property above or below lots on these plans. It follows that every plan of strata subdivision must jointly insure their buildings. This is widely misunderstood and an appropriate note should be added to this section to clarify.The insurance provisions should be amended to include the concept that insurance must be in line with policies of insurance generally available for that class of risk.Compulsory periodical insurance valuations are appropriate but delete reference to registered value’s and substitute qualified value as values are no long required to be registered.
The addition of an appropriate penalty should be considered as an encouragement for developers to supply the required information. Add acting on the authority of the committee after corporation to ensure the chairperson or secretary has the support of the committee. add or the manager after lot owner. Smaller bodies corporate may not have a committee or chairperson.
There may be situations where the committee will not authorize the manager to convene a special general meeting and it may be onerous to nominate a lot owner to convene the meeting requested by 25% of lot entitlements. This section should be amended to provide that an owner’s corporation must elect a chairperson in the absence of an elected chairperson.This section is linked to Section 2.7 and is unnecessarily complex and confusing. Both sections need re-writing to clarify intent and should allow decisions by ballot.
There is particular concern over the possible ramifications of a power to control the use of a lot. For example, in an industrial complex the members may pass a rule that prohibits the use of premises for say panel beating or wood working where the zoning does in fact allow such uses.Perhaps new Section 8.3 (c) may apply where this type of rule may be inconsistent with or limits a right under any other Act or regulation – as zoning is pursuant to powers under the Planning and Environment Act 1987.
Schedule 1 at 5.1 also provides that change of use of lots is a matter that can be controlled by rules again this should be clarified so as to not take away or diminish unfairly a property owners rights. Perhaps add a new provision to make it clear that a lot cannot be used in any manner that breaches another Act or regulation.
This concept needs clarification or the addition of notes to make it clear how far the body corporate can regulate the use of lots unless the use is unlawful.
Add or manager after secretary as the majority of managed owner’s corporations will not have a secretary. Any person may have access to only the information contained in a certificate. The process of managing the steps involved in the Land valuation gives you an idea about the value of that land. There are two classes of persons entitled to different information. Owners, mortgagees and purchasers should be entitled to all information except that of a personal and private nature.
A time limit of say 12 months should be placed on a former manager to instigate a matter at VCAT. A person who has entered into a purchase contract should be added as a class of person that may apply to VCAT..
The term “purchaser” is used in other sections and the wording should be consistent.If a manager is also a licensed estate agent, and currently recorded on the Business Licensing Authority register of estate agents, it should be unnecessary to duplicate an application. It should suffice that the estate agent notifies BLA that they need to be also added to the Owners Corporation Register and any information added to meet this Act's requirements that may differ from the information currently held by BLA. The grounds to be excluded from eligibility for registration should be modeled on the agent’s representative grounds.
Add acting on the authority of the committee after corporation to ensure the chairperson or secretary has the support of the committee. property valuers brisbane is necessary to make stress less transactions. It seems unnecessary for an owner to appoint a proxy to vote in a ballot when attendance at a meeting is not required and the owner could simply exercise their vote by completing the ballot instead of a proxy.
These sections should be redrafted to simply provide that a ballot or proxy is to be sent to the owners corporation at its registered address. It is an unnecessary complexity to have ballots and proxies delivered to the secretary and not the manager, and do not recognize the reality that thousands of small bodies corporate do not have a committee or secretary. Managers have fax machines and email facilities where many members acting as secretaries do not. A manager is a servant of the body corporate and provides managerial and secretarial services and the registered address at the Land Titles Office for the service of notices is commonly the manager’s address.
Are they to be so distrusted that they cannot receive proxies and ballots? Add a provision that a proxy holder who is not an owner may not vote on the matters listed unless the proxy specifically provides an instruction to vote in a certain manner. Many owners, especially absent investor owners, do not know other members in the body corporate to appoint as their proxy or have someone to attend on their behalf, in which case they should be free to choose the manager to hold their proxy if they wish.
When linked to S 4.14 it defies reality. Add by ordinary resolution after appoint to clarify that the appointment of a manager need only be by an ordinary resolution. The same should be added to sub-section (6) for the revoking of the appointment of the manager. A further sub-section should be added to provide that a manager may only sub-delegate to an employee of the manager. www.valsvic.com.au. "The wording of this provision is confusing as it implies additional powers of the committee.
This provision is impractical as it does not recognize the reality of day to day operations of bodies corporate. It is inappropriate for a manager’s appointment to be simply terminated by the efflux ion of time if a meeting is delayed. Records should only be required to be handed over within 28 days if the management is terminated or the manager resigns.Add and must ensure who an occupier of a member’s lot before comply.
This will ensure that an owner has the responsibility, as the member of the owner’s corporation, to ensure their tenants comply with the Act, Regulations and Rules. The owner’s corporation has no legal relationship with an occupier and generally does not know their name or status. Add and a purchaser that buys a lot after sells a lot.
This would also be consistent with the aims of the Victorian Business Master Key project. Purposes of register of managers this should be amended to ensure that the complete list of owner’s corporations that a particular manager is the manager for should not beavailable to anyone other than the Director and the Business Licensing Authority. No other business would allow a complete list of their clients to be placed in the public domain. It is also not mentioned in the Final Report of the Body Corporate Review.
An owner’s corporation is an entity to represent lot owners in the management of commonly owned property and to regulate the property rights of the respective owners for the good of the majority. Also, the sections incorporated into the draft Owners Corporation Act are lengthy and complex and inappropriate. The Institute is of the opinion its recommendations will serve the public interest and all the owners, users and occupiers of properties affected by an owner’s corporation.
We strongly request an opportunity for members of the Real Estate Institute of Victoria Ltd to meet with the Minister for Consumer Affairs and senior department officers to formally present and discuss the views and recommendations contained in this submission. Valuation of real estate property will add some more features in your property. For your information, below is a plan of action, endorsed by Members’ Council on Tuesday 6 December 2005, in relation to the review announced by the Estate Agents Council to relax the present requirements on lawyers .The Minister for Housing recently released the Office of Housing’s December quarterly rental report so it is worth looking at how the rental market is faring outside Melbourne.
The current property market conditions are the best in years for first home buyers, and added to this there is limited time left to take advantage of the current level of Government financial assistance. With the traditionally strong spring selling season upon us, it is timely to remind sellers of some tips in preparing a property properly for sale.
A review of 2003 showed that investment capital flows continued to inundate the retail market.-
Office investment did increase during the past year, but its gains were muted at 8 percent by the lack of nine-digit deals.
Total retail property sales volume skyrocketed to nearly $1.6 billion in 2003, nearly double last year’s total and 10 times higher than 2000 when office was the favored property type. And, for the first time in five years, retail surpassed office as the most invested property type at 42 percent versus 36 percent of total 2003 sales volume, respectively.
Weak to flat fundamentals in the leasing markets and sluggish economic growth in the Bay Area may bring an increased number of troubled assets to market, but the larger impact is poised to be a reduction in the number of high quality assets that could be brought to market. The projected rise in interest rates will have both positive and negative impacts. Real estate still looks good as an investment class, but continued strong stock market performance could represent a challenge for investment dollars.
Private investors who rely on leverage may be the first to retreat if interest rates continue to rise, but this may create buying opportunities for institutions, which sat out much of the recent buying frenzy. However, the gap between over-performing assets and market fundamentals will continue to narrow, resulting in either lower sales volume and stable prices or higher sales volume and lower price levels.
Motivated buyers should seek out high quality office properties and make unsolicited offers — it’s usually for sale at the right price and low interest rates can help make a deal work for both sides. The valaution company providing advice in the field of real estate to manage the property valuation services will always make effect on your process. The hope that a better economy will put doward pressure on vacancy and upward pressure on rents may not happen soon enough to keep office and R&D prices propped up. The level of distress is likely to rise in 2004, forcing more office properties on the market, but buyers would be wise to recognize that market recovery is not just around the corner.
The capital markets are flush with cash and higher interest rates will undoubtedly reduce that stash as will the burn-off of over-market rents and sublease space.Seek out new residential developments of manageable size — fundamentals are strong, but use caution, long lead times have always created high risk.Target multi-tenant buildings with small divisibility to diversify your tenant base and limit market downside risk on lease rollover.
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