The Sydney CBD office market is experiencing its strongest demand in a decade, according to the Property Council of Australia’s latest Office Market Report.
“Sydney’s office market continues to have the lowest vacancy rate and the strongest demand of all capital cities,” Acting NSW Executive Director Felicity Wilson said today.
“Sydney’s CBD saw positive demand at the top end of the market, matched by strong supply additions”.
“Net absorption totalled 96,745sqm in the six months to January 2016 – more than triple the historic average”.
The vacancy rate across the market remained steady at 6.3 per cent in the six months to January 2016.
“While the vacancy rate for premium grade assets increased from 5.2 per cent to 8.1 per cent, reflecting the timing of new supply, the A grade vacancy rate fell from 6.7 per cent to 5.4 per cent”.
“Premium grade assets still accounted for the bulk of new demand with 100,139sqm of net absorption”.
“Withdrawals across the market over the past six months totalled 47,217sqm while 149,498sqm of new stock was added.”
Ms Wilson said 243,126sqm of new stock was due to enter the market in 2016.
“The NSW economy is going from strength to strength, with the three best performing Non-CBD markets across the country in NSW.”
Image by Adnan Vejzovic