New data from the Property Council has confirmed that office vacancies in major Australian cities still remain high.
Nationally, the office CBD vacancy rate rose slightly in the second half of 2024 to 13.7%, as supply additions continued to outpace demand and marks the highest vacancy rate since the mid-1990s.
Over the same period, the national suburban vacancy rate stayed stable at an elevated 17.2%.
Across Australian cities, CBD vacancy rates ranged from 10.2% in Brisbane and Canberra, to the highest in Melbourne at 18%.
Melbourne had substantial withdrawals contributing to negative net additions, but while overall the PCA data tracked as anticipated, Melbourne CBD vacancy rate predictions actually came in lower than forecast and higher than expected in Brisbane.
Adelaide seemed to be on the up, recording the largest decline in the total vacancy rate during H2 2024, down to 16.4%, followed by Perth at 15.1%.
Heading to the suburbs, Chatswood, Brisbane Fringe, Southbank and Macquarie Park saw falls in their total vacancy rate, while Crows Nest & St Leonards, St Kilda Road, Parramatta and North Sydney saw increases.
When it came to supply, the Sydney CBD saw a notable addition of 123,000 sq m and 21,000 sq m in Perth, with minimal change in Brisbane, Adelaide and Canberra.
