Thursday 6 February 2025
MEDIA RELEASE
Canberra Office Market: Strong Supply Pipeline Highlights Growth Potential
The Canberra office market maintained its position as one of the tightest capital city markets, with a vacancy rate of 9.2 per cent, down from 9.5 per cent over the six months to January 2025, according to the latest Property Council of Australia Office Market Report.
Property Council of Australia ACT & Capital Region Executive Director Ashlee Berry said while tenant demand remains steady, the latest report highlighted the importance of driving long-term demand to match Canberra’s strong supply pipeline.
“These results reinforce the need for a coordinated approach to maintain vibrancy in the city centre while maximising opportunities for new tenants,” Ms Berry said.
“With a vacancy rate of just 9.2 per cent, Canberra is one of the best-performing capital city markets, but we need to plan to make sure demand continues to grow in line with the city’s future office supply.
“Our public sector anchors much of Canberra’s commercial real estate demand, but the challenge now is to complement that with initiatives to enhance the CBD’s vibrancy and attract a more diverse range of businesses and workers,” Ms Berry said.
Key insights from the January 2025 Office Market Report:
- Vacancy fell slightly from 9.5 per cent to 9.2 per cent, driven by net absorption (more space leased than vacated over the period) of 20,419 sqm
- Future supply is strong, with significant projects in the pipeline, including:
- Section 100 – Block 40 (34,086 sqm, due Q1 2025)
- Cnr Sydney Avenue & National Circuit (33,000 sqm, due Q2 2025)
- 9 Molonglo Drive (19,700 sqm, due Q2 2026)
- Canberra’s office vacancy remains well below the national average of 14.7 per cent, reflecting its status as a stable and desirable market.
Ms Berry said it was critical for the property industry to continue to work collaboratively with the ACT Government and local businesses to foster economic activity and innovation in the CBD.
“The supply side of the equation is well addressed, with high-quality developments in the pipeline. Now we need to focus on making sure Canberra remains a place where people want to work, live and do business,” she said.
“This means investing in the CBD’s vibrancy—supporting events, cultural activities and infrastructure that attract workers and enhance the overall appeal of the city centre.”
The Property Council of Australia Office Market Report is released twice a year, providing comprehensive analysis of the performance of office markets across Australia. For more information, visit: [www.propertycouncil.com.au/news-research/research/office-market-report]www.propertycouncil.com.au/news-research/research/office-market-report.
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Media: Andrew Parkinson | 0404 615 596 | [email protected]