Market reports
Melbourne's office workers continue to trail behind the rest of the country in returning to the CBD, driving the vacancy rate up from 16.6% in January 2024 to 18.0% in July 2024.
Adelaide CBD office vacancy has decreased from 19.3% to 17.5%, with Melbourne now taking the lead for the highest vacancy rate. New building vacancy remains low at just 1%, while prime A-grade vacancy is 20.2%, and secondary vacancy stands at 16.5%.
According to the October edition of the Commsec State of the States report of October Western Australia now leads the national performance rankings for the first time in a decade. Population growth remains strong at 3.11% for the year to the end of March 2024.
The Brisbane CBD vacancy rate remains comparatively low at 9.5%, outperforming other CBD markets across Australia. This resilience is attributed to increased demand for prime-grade office space and the withdrawal of secondary-grade stock.
The Sydney CBD office market has experienced a slight decrease in overall vacancy rates, now at 11.6%, which remains above the 10-year average. This decline is primarily attributed to limited new supply and stock withdrawals. Both Prime and Secondary vacancy rates saw reductions, closing at 11.9% and 11.1%, respectively.
Adelaide CBD office vacancy decreased from 19.3% to 17.5%, with Melbourne now replacing Adelaide as the highest vacancy. New building vacancy is estimated at just 1%, with prime A grade vacancy reported as 20.2% and secondary vacancy 16.5%.
Brisbane CBD’s vacancy continues remain low at 9.5% in comparison to other CBD markets across Australia. This has been a result of the increase in demand for prime grade office space and the withdrawal of secondary grade stock.
The overall office market vacancy rate for Sydney CBD decreased slightly to 11.6%, still high compared to the 10-year average. The lack of new supply and stick withdrawals contributed heavily to the vacancy rate falling. The Prime and Secondary vacancy rates fell, ending at 11.9% and 11.1%, respectively.
