Use of Technology in Process of Property Valuation Services

The outsourcing wave continues to buoy the Perth property valuations occupational market with demand for commercial space heavily dominated by the IT/BPO/Call Centre sector. Developers have responded by providing more efficient space and a better class of product than they were delivering five years ago, at a lower cost. Development levels are high, with over 500,000 sqm of space forecast to be delivered to the Delhi market in the coming year, 69% of which is in the rapidly growing Gurgaon district.

Hong Kong’s strong positive performance in emerging from recession and high levels of both achieved and forecast rental growth see it top the market strength table. Buoyant occupier demand levels and falling vacancy rates in Bangkok, as well as strong economic performance, are expected to continue in 2005, helping the city achieve the second position. Shanghai, Kuala Lumpur, and the Indian markets continue to grow rapidly but are also volatile. Demand is expected to recover in the Australian markets, although overall supply/demand conditions are likely to be dampened by the delivery of new office towers in a number of CBDs.

An overall trend towards decentralized office parks continues, particularly in the larger cities such as Johannesburg and Nairobi where crime and traffic congestion have left traditional CBD areas with high vacancy rates. and property values, However, there are now a number of urban regeneration programmes in place aimed at improving the CBD markets in Southern and Eastern Africa.

In South Africa, anticipated growth in the business services sector, with its knock-on effect on office demand, should help absorb surplus space in many of the key business centers. South Africa’s main office hubs predominantly achieved positive net absorption in 2004. However, despite some erosion of availability Johannesburg remains heavily over-supplied and rental values depressed. Significant growth is not expected in the coming year.