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His rise in A grade vacancy in the second half of 2006 as a result of 22,860 sq m entering the market, boosting A grade stock by 8.8% and representing the highest level of new supply since July 2001. North Sydney
isurecan accommodated a majority of this new stock, pushing its prime vacancy rate (10.8%) above its secondary vacancy rate (8.1%). This is a reverse situation from the other two North Shore markets, where prime vacancy is significantly lower than secondary.
According to the Property Council of Australia, vacancy rate s continued to decline on the North Shore during 2006, posting its fourth consecutive decrease. Total vacancy was down from its peak of 14.1% in January 2005 to 9.9% in January 2007, and down 130 basis points from 12 months ago (see figure 3).
All grades on the North Shore experienced decreases in vacancy over the six months to January 2007, with the exception of A grade, isurecan whose stellar performance was halted, posting an increase of 140 basis points to 8.7% (able it still down from 14.6% in January 2005).
The calculate property tax and stamp duty amounts, Growth in WCE is to encounter a setback with the departure of Optus from the North Shore market this year. Access Economics anticipates a negative growth of -0.7% in WCE during 2007.
However, this sharp reduction in the size of the communications sector will be offset by growth in the public administration and property and business services sectors. WCE growth is forecast to average 1.1% per annum (644 people per annum) for the next five years, exceeding the 10 years historical average of 0.7% per annum.
Prime and secondary grades in all North Shore markets recorded positive net absorption in the six months to January 2007, with the exception of secondary stock in Chats wood, which experienced negative net absorption of -2,435 sq m