Australian CBD Office Figures Q4 2025

Key Points:

• The labour market has tightened with the unemployment rate at 4.1% in December 2025.
• There was a strong performance of prime office space, which saw net absorption of 157,837 sqm in H2 2025, the highest level since 2017.
• Despite the positive growth in the tenant base, national CBD vacancy edged higher to 14.8%, from 14.3% 6-months earlier.
• Australian CBD prime effective rents climbed 1.3% q-o-q and 5.3% y-o-y in Q4 2025.
• Transaction activity in Q4 2025 reached $4.2 billion, an improvement on the previous quarter. Overall volumes for 2025 were down by 4.8% y-o-y, largely due to fewer major transactions in Sydney.
• Prime yields were relatively stable in Q4 2025 across most Australian CBD markets.