Melbourne demand surges as Australian office vacancies tighten
Melbourne CBD is the standout performer of a tightening Australian office
landscape according to the latest Australian Office Market Report released by
the Property Council of Australia.
market vacancy rates across Australia fell from 9.6 per cent to 9.1 per cent
over the six months to July 2018, with Melbourne’s office vacancy rate hitting
a 10 year low of 3.8 per cent (down from 4.6 per cent in January
2018) – the lowest vacancy rate of all Australian CBDs.
of the CBD markets record declines in their vacancy rates during the
period, ranging from 3.6 per cent in Melbourne; 4.6 per cent in Sydney; 12.1
per cent in Canberra; 14.7 per cent in Adelaide; 14.6 per cent in Brisbane and
19.4 per cent in Perth.
markets had lower vacancy rates than the same time 12 months ago with
the exception of Canberra which increased from 11.6 per cent in July
vacancy rates are a good measure of economic performance, and Melbourne is
clearly the stand-out performer of the nation,’ said Ken Morrison, Chief
Executive of the Property Council.
is our fastest growing city and best performing economy which in turn is
creating strong jobs growth and demand for office space at more than
twice its historical average.
the country’s future office supply over the next three years
will be built in Melbourne, which is exactly where you want it – responding to
Melbourne is performing strongly, the Sydney market has also tightened further,
with a CBD vacancy rate of 4.6 per cent, down from 4.8 per
cent six months ago,’ Mr Morrison said.
results for Brisbane show a welcome return in market activity with vacancy
across the CBD dropping from 16.1 per cent to 14.6 per cent.
passed its peak vacancy, with both the CBD and West Perth recording drops in vacancy,
although at 19.4 per cent the CBD vacancy rate in Perth is still above the
CBD office vacancy rate has dropped for the third consecutive period, with fringe
vacancy also dropping. There has been a strong flight to quality in the
Adelaide CBD with premium vacancy dropping to 2.8 per cent, the lowest vacancy
level since July 2012.
the country we are seeing a shift towards premium office quality, but a more
challenging outlook for lower grades of stock,’ Mr Morrison said.
challenge for planners and owners is to come up with solutions to encourage
the utilisation of secondary office stock to help meet future demand and
support vibrant and affordable commercial districts in both CBD and non-CBD
areas,’ Mr Morrison said.
non-CBD vacancy rate increased slightly from 8.9 per cent to 9 per cent over
the six months to July 2018. The top three non-CBD markets are East Melbourne
(3.1 per cent), Parramatta (3.2 per cent), and Macquarie Park (5.4 per
the top ten performing non-CBD markets are in New South Wales:
Parramatta, Macquarie Park, North Sydney, Chatswood and Crows Nest/St
For a comprehensive range of Australian property industry data visit the Data Room at http://research.propertycouncil.com.au/data-room
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