Melbourne office vacancy rate steady at 6.5%
Melbourne’s office market has stabilised over the past six months according to the Property Council of Australia’s Office Market Report released today. This reflects Victoria’s economic strength and employment growth.
Victorian Executive Director of the Property Council, Sally Capp, said the overall vacancy rate has improved from 7.1% to 6.5% over the twelve months to July 2017.
“Melbourne continues to host the second lowest vacancy rate amongst all of Australia’s CBDs,” says Ms Capp.
“30,606sqm of supply additions were effectively matched by 21,430sqm of net absorption and 7,183sqm of withdrawals in the six months to July 2017.
“Melbourne CBD stock is forecast to grow by 18,939sqm over the second half of 2017, 92,400sqm in 2018, and a significant 377,600sqm from 2019 onwards.”
Ms Capp said Melbourne’s future commercial office supply is a top priority for the Property Council as it is a key ingredient for any successful global city.
“We have research underway into the drivers of the commercial property market and the policies necessary to provide a steady supply of high quality commercial office space into the future.
Eastern Core and Docklands precincts have the lowest vacancy rates in Melbourne at 2.6% and 2.1% respectively, while Southbank’s vacancy decreased from 4.1% to 3.3% as a result of 4,595sqm of withdrawals.
Melbourne’s office market continues to see a flight to quality, where both the Premium and A Grade market vacancy decreased from 6.6% and 6.5% respectively to 6.1% for both grades.
Media contact: Sally Capp | E [email protected]
Melanie Slade | E [email protected]