The nation’s office markets continue to lead the way over their suburban counterparts, with strong demand and a lack of available stock pushing vacancy rates to the lowest level in two years.
According to the Property Council of Australia’s (PCA) latest Office Market Report, total vacancy in Australia’s office markets decreased from 9.6 per cent to 9.0 per cent in the six months to July 2011.
Australia’s CBD office markets continue to outperform suburban office markets in terms of vacancy. Over the six months to July 2011, CBD markets fell 0.3 per cent to 8.4 per cent, while non-CBD market vacancies declined 0.9 per cent to 10.5 per cent, over the period.
“The CBD office markets are the property success story of the past year, with four of the six markets tracked by the Office Market Report showing vacancy of less than 8.0 per cent,” Property Council’s chief executive Peter Verwer said.
“While suburban office market vacancy lags the CBD market, there is still a positive story here. Total vacancy in non-CBD markets reduced over the six months to July 2011, and while the aggregate is still at 10.5 per cent, two-thirds of non-CBD markets tracked by the report show vacancy below 10 per cent.”
Melbourne’s CBD recorded the nation’s lowest vacancy rate with 5.8 per cent, while Sydney was the only capital city to record an increase to 9.3 per cent – up one per cent over the six months to July 2011.