Thursday 1 August 2024
MEDIA RELEASE
Canberra Caught in Office Market Vacancy Slump
Canberra’s office market saw a worrying increase in vacancy rates in the six months to July, prompting renewed calls from the property sector for concerted action from government to encourage a return to the office for public sector employees.
Property Council ACT Acting Executive Director Katie Stevenson said the latest Office Market Report shows Canberra saw an uptick in vacancy rates to 9.5 per cent in July from 8.3 per cent in January, well above the historical average of 7.6 per cent.
“These numbers underline the need to show leadership and encourage more employees – especially those in the public service – to return to the office as part of a balanced working week.
“The CBD is the engine of Canberra’s economy, with the greatest concentration of jobs, education and social infrastructure, and we need it to be vibrant and attractive every day of the week.
“But that engine has been running in low gear since the pandemic, and office vacancy rates continue to increase, impacting the appeal of the city centre,” she said.
Ms Stevenson said quality commercial spaces offering great amenity are increasingly sought by companies and workers.
“We also need to find measures to cut red tape and make sure planning approvals move more quickly through the system,” she said.
The latest Property Council of Australia Office Market Report for the six months to July shows:
- Canberra CBD vacancy rates increased from 8.3 per cent to 9.5 per cent, remaining (along with Sydney and Brisbane) below the national average of 14.6 per cent
- Net CBD demand for office space in Canberra, at 6,000 sqm, remains well below the historical average of 14,000 sqm
- Canberra’s supply pipeline sees a boost next year with more than 67,000 sqm from Section 100 Block 40 and Cnr Sydney Avenue and National Circuit, but supply falls well below the historical average in 2026 and 2027.
The Property Council of Australia Office Market Report is released twice a year.
ENDS
Media: Andrew Parkinson | 0404 615 596 | [email protected]