Property Council latest results praise resilience shown by Sydney CBD
The Property Council of Australia’s latest Office Market Report has highlighted the resilience shown by the Sydney CBD office market during the most pressing times in recent history. Despite the health restrictions of the past 18 months, the vacancy rate remains below 10 percent for Sydney CBD. Sydney remains as one of the most well-equipped markets to mitigate new challenges faced by the commercial office market, as one of two mainland CBD markets across the country that records vacancy below 10 percent.
As the property industry continues to fight through extended lockdowns, Acting NSW Executive Director of the Property Council of Australia, Lauren Conceicao, said the recent office occupancy rates were encouraging.
“The CBD has been a slow-moving story, but tenant demand has increased by 0.6% from Jan to July 2021 and vacancy overall has increased from additional supply coming online, an increase from 8.5 percent to 9.2 percent,” Ms. Conceicao said.
“Net CBD demand is above historical average, with a notable uptick in the availability of subleasing and demand for premium is at its highest.”
Ms. Conceicao said the resilience of the office market during this crisis is an excellent result for positioning Sydney as the best global city to invest in.
“Although these results were positive, learning from the Melbourne experience, we need to ensure we inject life back into our CBDs once we are through lockdown to save our city.
“Melbourne showing the lowest demand since records began in 1990 highlights the need to get the engine roaring on our Sydney CBD for the benefit of the economy in the short, medium and long term.
“We can’t afford to become complacent so we must do everything within our capabilities to ensure we don’t do permanent damage to our CBDs.
“There has never been a more critical time for the industry, these next few months could have a very long-lasting effect on our future so we will continue to do everything we can to support and advocate towards coming out of these lockdowns with at least harm as possible.”
Media contact:Aidan Green | M 0491 030 028 | E [email protected]