Australian CBD Office Figures Q4 2024

Key Points: 

• The labour market remains tight at just 4.0% national unemployment in December 2024. There have been 444,000 jobs created over the past 12 months or 3.1% growth.
• Net absorption across the country (CBD & Non-CBD) continued to improve, reaching 66,800 sqm in H2 2024.
• Overall CBD vacancy increased slightly from 13.6% to 13.7% in H2 2024, in part due to supply in the Sydney CBD.
• The Australian CBD prime average effective rent increased by 0.7% q-o-q and 5.5% y-o-y in Q4 2024.
• Transaction activity in 2024 improved significantly from last year, albeit off a low base. Full year volumes reached $10.7 billion, up 70% compared with 2023 levels as buyer sentiment improved towards the office sector.
• Prime yields are starting to stabilise off the back of recent transactions, with the national CBD average rising by just 4 bps q-o-q to 6.60% in Q4.