Ms CARTER - 2003-10-09
According to the Department of Corporate and Information Services, when the proposed developments such as Chinatown, Mitchell Centre, TIO and Old Admiralty House are completed, the vacancy rates for commercial office space in Darwin will almost double from 12.5% to nearly 24%. What is your government going to do about the expected glut of office space? How are you going to stimulate demand? Or are we going to have as many empty office buildings in the CBD as we have shops and restaurants?
ANSWER
Madam Speaker, I thank the member for her question. People who put office space into any urban centre will be entering the open market. There is only so much a government can do regarding the supply and demand equation that those investments are going to go into, not only at the time the investment is made, but over the long period for which a building will exist.
When we called for expressions of interest for further development in Darwin, we took those matters into account. You may recall that, initially, we were looking at a larger square metreage to go out in government-leased accommodation that would be on offer for a new development. We looked at the vacancy rates at the time and felt that we needed to draw back on the original intended square metreage to a little over 4000 m. That is the figure that was finally vouched for by the government against a potential development.
Investors have to make their own decisions about the market, and the future of the market. Those decisions have been made by many developers who have chosen to invest in Darwin. I believe, like us, they believe in the long-term future of Darwin as an urban and commercial centre, and that they will see a return on their investment over time. These investments are made on 30- to 50-year outlooks, so we have great confidence that whoever invests in Darwin is going to see a return on their investment.
ANSWER
Madam Speaker, I thank the member for her question. People who put office space into any urban centre will be entering the open market. There is only so much a government can do regarding the supply and demand equation that those investments are going to go into, not only at the time the investment is made, but over the long period for which a building will exist.
When we called for expressions of interest for further development in Darwin, we took those matters into account. You may recall that, initially, we were looking at a larger square metreage to go out in government-leased accommodation that would be on offer for a new development. We looked at the vacancy rates at the time and felt that we needed to draw back on the original intended square metreage to a little over 4000 m. That is the figure that was finally vouched for by the government against a potential development.
Investors have to make their own decisions about the market, and the future of the market. Those decisions have been made by many developers who have chosen to invest in Darwin. I believe, like us, they believe in the long-term future of Darwin as an urban and commercial centre, and that they will see a return on their investment over time. These investments are made on 30- to 50-year outlooks, so we have great confidence that whoever invests in Darwin is going to see a return on their investment.
Last updated: 09 Aug 2016