Australian Office Figures Q1 2024

Key Points: 

• Labour market has started to cool with job ads down 14.9% y-o-y in March 2024.
• National rental growth sitting at 2.7% y-o-y (effective rent), driven by markets like Brisbane, Perth and Sydney.
• Incentives are showing signs of falling in stronger markets and have stabilised in other cities.
• CBD vacancy trended higher over the past 12 months to 13.7%. National vacancy is expected to peak in 2024.
• Investment market remains subdued with $1.2b worth of transactions in Q1.
• The degree of yield softening is starting to slow off the back of more certainty on interest rates and recent deal evidence in some markets. Yields are expected to stabilise in 2024.