Market reports
The Western Australian economy remains very strong with excellent opportunities for employment growth provided suitably skilled staff can be found and residential accommodation secured. Exports remain strong with over 45% of goods exported from WA 2021-22. As of 20 October 2022, the State is contributing 16% to the national economy.
As Melbourne’s office workers continue to lag the rest of the country in returning to the CBD office environment, the vacancy rate of the CBD continued to increase to 12.9% as of July 2022.
Brisbane CBD’s vacancy was the only CBD, along with Adelaide to decrease over the 6 months to July 2022, decreasing from 15.4% to 14.0% for a change of 1.4%. Brisbane has seen the strongest demand for office space, at a rate of more than three times the historic average. However, the fact that there was a large withdrawal of stock should also be considered when refencing the overall vacancy statistics in Brisbane. The appetite and a flight to quality seen at the start of 2022 has continued with several precommitments to future developments transacting.
Overall vacancy rate for Auckland CBD Office increased to 11.6% in Q3 2022. The spread of occupancy is further divided to 10% from 7.2% last quarter between Prime and Secondary grade. Primary grade was record 6.6% while Secondary grade vacancy rate was recorded at 16.6%.
Adelaide occupancy rate increased substantially from 71% to 78% in the latest data released in October. Occupancy rates measure employee office usage throughout the week, and Adelaide’s high occupancy rate contrasts with Melbourne and Sydney, which sits at 41% and 52% respectively. Vacancy across the Adelaide CBD also decreased from 14.5% to 14.3% in July 2022.
Demand for space remains high and largely unserviced and as a result vacancy levels across
all regions of Melbourne have fallen even further. The average Vacancy Rate across the
Melbourne Metropolitan region is now 1.1% with the Western region at an unprecedented
0.7%. As a result, there continues to be upward pressure on rentals in all markets across the
Melbourne metropolitan region which have all experienced double digit growth over the past
12 months.
Demand for space remains high and largely unserviced and vacancy levels across all regions
of Adelaide have fallen even further. The average Vacancy Rate across the Adelaide
Metropolitan region is now 0.9% with the Southern region at an unprecedented 0.6%. As a
result, there continues to be upward pressure on rentals and land values in all markets across
the Adelaide metropolitan region which have all experienced double digit growth over the
past 12 months.
Demand for space remains high and largely unserviced and as a result vacancy levels across all regions of Sydney have fallen even further. The average Vacancy Rate across Sydney Metropolitan region is now 0.3% while the Central Sydney and the North Shore markets are at 0.0% vacancy. As a result, there continues to be upward pressure on rentals in all markets across the Sydney metropolitan region which have all experienced double digit growth over the past 12 months.
