Office market supply rises despite low demand
The Property Council has compiled a comprehensive inventory of all useable office space in over 25 office markets across Australia.
The Office Market Report released today showed Darwin’s vacancy rate has increased from 10.9 per cent to a staggering 20.7 per cent.
The Property Council of Australia’s Northern Territory Director Ruth Palmer said “Darwin city has recorded the highest supply rate increase and the lowest demand growth in the nation.”
“A significant amount of supply has been brought onto the market over the last 24 months. This has occurred despite demand weakening during the same period.”
The report shows that negative demand was concentrated in the lower grades.
“Darwin’s vacancy rate has jumped 9.8 per cent and this was largely due to -18,727sqm of net absorption and 16,286sqm of supply additions.
“All grades of space recorded vacancies about 15 per cent.
“In order for us to see a long-term improvement in the office market, we need further investment in the City Centre, in particular the implementation of the Darwin City Centre Master Plan projects. Furthermore, it's critical that we receive a commitment from the Northern Territory Government to increase employment levels in the City Centre.
“Not only do we need to increase employment levels and investment in the city, we need to encourage further residential development to allow for additional population growth in our City Centre.
“We need to create a more vibrant, liveable, tropical city to encourage more people to want to live, work and play in the Darwin City Centre.”
Media contact: Ruth Palmer | M 0450 428 314 | E [email protected]
Key market indicators, Darwin CBD (aggregate)