The latest occupancy survey conducted that revealed office occupancy rates remained steady as the Omicron wave nears its end.
The Property Council’s survey for August 2022 found Adelaide’s occupancy rate rising the largest, with occupancy climbing from 64 to 71 per cent, whilst Brisbane’s occupancy increased from 53 to 57 per cent and Canberra’s from 61 to 64 per cent.
Occupancy held firm in Melbourne and Sydney, rising from 38 to 39 per cent and 52 to 53 per cent, respectively. Perth was the only market to witness a slight drop from 71 to 69 per cent.
Property Council Chief Executive Ken Morrison said, “Despite the challenging environment, it’s very pleasing to see plenty of people returning to their workplaces, with occupancy on peak days reaching 83 per cent in Adelaide, 78 per cent in Canberra and Perth and 75 per cent in Brisbane,” Mr Morrison said.
“In the previous survey for July we saw occupancy levels go backwards for the first time in six months, so to see the August figures hold steady or nudge slightly higher in most capitals, despite Covid and flu cases as well as industrial action in Sydney, is a solid outcome.
“While the results are still a way off the previous recovery high points seen around May 2021, they show the CBD office market’s resiliency, with occupancy levels remaining stable throughout a challenging period.
“It’s fair to say Melbourne’s occupancy at 39 per cent remains a concern, but you would hope that starts to lift again as the months get warmer,” he said.
Despite the negative impacts of the COVID-19 Omicron wave and stalling occupancy levels, the Property Council’s latest Office Market Report revealed that companies leased more space in the country’s CBD over the first six months of the year, with demand for commercial space growing by a healthy 0.5 per cent.