Growth needed to boost Sydney CBD office market
The Sydney CBD office market continues to perform well but demand has dropped off, according to the Property Council of Australia’s latest Office Market Report.
"Sydney’s office market continues to have the lowest vacancy rate of all capital cities yet it is concerning that demand for space has fallen over the past six months," NSW Executive Director Jane Fitzgerald said today.
“Sydney’s CBD saw vacancy rates increase in four of the five grades with D grade office space the only exception.”
The vacancy rate across the market increased to 6.2 per cent in the six months to January 2017 up from 5.6 per cent in July 2016.
“The vacancy rates for premium, A, B and C grade assets increased between 0.2 and 1 per cent, reflecting both supply additions and negative net absorption with positive demand concentrated in the premium grade segment,” Ms Fitzgerald said.
“The drop in demand indicates the need to boost economic growth and encourage big business to set up shop in our CBD. If we are to cater for a growing population with the smart jobs of the future as well as remain internationally competitive.
“NSW had five of the top ten markets with the lowest vacancy rates in Australia but we must not rest on our laurels – to continue to stay ahead of other Australian and overseas markets we need to concentrate on encouraging investment.”
Ms Fitzgerald said 84,364 sqm of new stock was due to enter the market in 2017 with 128,600 sqm due to come online from 2019 onwards.
For more information or to purchase the January 2017 Office Market Report, click here.
Media contact: William Power | E [email protected]