According to a recent Property Council of Australia survey, CBD employees are returning to their offices, with occupancy rates in Melbourne, Sydney, and Canberra more than doubling since March.
While several cities’ significant increases were coming off Omicron-induced lows, Property Council of Australia Chief Executive Ken Morrison said the data was very encouraging.
“It’s heartening that people are returning to the office in such numbers, particularly given considerable weather events on the east coast and the continuing isolation impacts of the pandemic,” Mr Morrison said.
“To see office occupancy rates double in some of our major CBDs is especially pleasing and bodes well for further recovery in the months ahead.
“While most businesses are encouraging some flexible working arrangements with their staff, there are huge benefits in personal connection and it’s good to see these being embraced once again,” he said.
Sydney
The survey showed Sydney’s office occupancy statistics has more than doubled for the third month in a row as employees return to visit their colleagues and enjoy the Sydney CBD.
According to Property Council NSW Executive Director Luke Achterstraat, the increase in occupancy rates from 7 per cent in January to 18 per cent in February and now 41 per cent in March shows that the recovery is on track.
“To see the rates rise almost by six times since the start of the year is very pleasing and reminds us all that we are on the road for recovery,” he said.
“While most businesses are encouraging some flexible working arrangements with their staff, there are huge benefits in personal connection and it’s good to see these being embraced once again.”
Melbourne
Office occupancy levels in Melbourne’s CBD more than doubled in March with the city’s occupancy at its highest since May 2021.
According to the Property Council of Australia’s latest Office Occupancy Survey, occupancy levels are at 32 per cent, after the Victorian Government’s repeal of the mask requirement and work from home directives in late February.
Property Council Victorian Executive Director, Danni Hunter, said occupancy climbing from 15 per cent to 32 per cent was a dramatic jump that showcases a clear vote of confidence for the rebound of Melbourne’s CBD.
“In the past month, Melbourne’s CBD has been buzzing with energy as city workers once again line the streets, sending the message that Melburnians are ready to connect, collaborate and take in the full Melbourne experience that has been dampened over the past two years,” she said.
Brisbane
Brisbane’s office occupancy level has increased for the third month in a row, although it remains much lower than last year’s high and significantly lower than pre-COVID levels.
Office occupancy had climbed from 41 per cent in February to 48 per cent in March, indicating that Brisbane’s city core was still recovering, if slowly, from the effects of the floods and the recent Omicron wave.
Jen Williams, Queensland Executive Director of the Property Council, said the findings demonstrated the resilience of Brisbane’s workplaces and companies, with the majority of them back up and running within hours of the floodwaters receding.
“It hasn’t been the start to 2022 we envisioned for the city centre, but key learnings from 2011 ensured a quick bounce back for many operators, and confidence is again building,” Ms Williams said.
Perth
Perth was the only city to observe a dip in office occupancy as the city approached its peak Omicron infection period, with rates decreasing from 55 per cent to 45 per cent, the lowest percentage since July 2020.
“Until mask mandates ease, it is not expected that employers will encourage their workforces to return to the office and improve occupancy,” WA Executive Director Sandra Brewer said.
“Throughout the pandemic, the Premier has encouraged people to continue to attend their workplace and this has been applauded by the Property Council. Making masks optional will remove a big barrier to coming to the office, with a recent poll of WA Members showing 61% are choosing to work from home due to mask mandates.”
Adelaide
Adelaide saw a more modest gain, rising from 47 per cent to 61 per cent, the highest occupancy rate in the country.
It is an impressive bounce back from the low 11 per cent office occupancy witnessed in January 2022.
On a peak day in Adelaide, the occupancy rate reached a high of 72 per cent, but on a low day, it fell to 49 per cent.
Canberra
The office occupancy rate in Canberra doubled from 21 per cent to 45 per cent.
On a peak day in Canberra, the occupancy rate reached a high of 50 per cent, but on a low day, it fell to 22 per cent.
Office Occupancy rates:
|
|
Mar-21 |
Apr-21 |
May-21 |
Jun-21 |
Jul -21 |
Aug-21 |
Sep-21 |
Oct-21 |
Nov-21 |
Jan-22 |
Feb-22 |
Mar-22 |
|
Melb CBD |
39% |
45% |
45% |
26% |
12% |
7% |
6% |
4% |
12% |
4% |
15% |
32% |
|
Syd CBD |
56% |
65% |
68% |
67% |
7% |
4% |
4% |
8% |
23% |
7% |
18% |
41% |
|
Perth CBD |
79% |
78% |
77% |
76% |
78% |
77% |
76% |
79% |
77% |
66% |
55% |
45% |
|
Canberra |
72% |
70% |
71% |
72% |
73% |
8% |
8% |
7% |
17% |
7% |
21% |
45% |
|
Bris CBD |
79% |
78% |
78% |
71% |
67% |
60% |
64% |
57% |
63% |
13% |
41% |
48% |
|
AdelCBD |
69% |
70% |
71% |
80% |
15% |
65% |
51% |
64% |
73% |
11% |
47% |
61% |