Thursday 1 August 2024
MEDIA RELEASE
Metro Boost Beckons for Sydney CBD Office Market
The Sydney CBD office market saw a slight improvement in vacancy rates in the six months to July 2024, driven by increased demand for premium grade office space, but remains stubbornly high according to the latest Property Council of Australia Office Market Report.
Property Council NSW Executive Director Katie Stevenson said the new Chatswood to Sydenham line, together with CBD vibrancy measures, and quality working spaces and amenities, could help to maintain and lift the appeal of office-based work.
“The Sydney CBD and other local centres drive our economy, attracting investment, jobs and talent, and supporting the many thousands of businesses that depend on a thriving city centre.
“We need vibrant CBDs and commercial centres every day of the week and so we must continue to find more reasons to encourage more people back to the office more often.
“When operational, Metro City will offer fast and reliable services right through the heart of Sydney, we’re seeing welcome investment in the night-time economy, and companies continue the ‘flight to quality’ when it comes to finding commercial spaces with great amenity,” she said.
The latest Property Council of Australia Office Market Report for the six months to July shows:
- Sydney CBD vacancy rates fell from 12.2 per cent to 11.6 per cent, with Sydney, Canberra and Brisbane all recording vacancy rates below the national average of 14.6 per cent
- Vacancy rates for premium office space improved significantly over the last six months – from 13 per cent to 10.8 per cent
- Net CBD demand for office space in Sydney remains in negative territory, approaching minus 5000 sqm, well short of the historical average demand of around 19,000 sqm
- Sydney’s short-term supply is the healthiest of all major CBDs with major projects in Q3 this year including 1 Elizabeth Street and 252 Pitt Street, and 8-10 Lee Street by Q1 2027
- Parramatta, Macquarie Park, North Sydney and Sydney CBD all saw vacancy rates fall, while Crows Nest/St Leonards and Chatswood saw increases.
The Property Council of Australia Office Market Report is released twice a year.
ENDS
Media: Andrew Parkinson | 0404 615 596 | [email protected]