Australian Office Figures Q2 2024

Key Points:

• The labour market has remained more resilient than expected, with about 50,200 jobs created in June 2024 and the unemployment rate at 4.1%.
• Office demand returned to positive territory with total net absorption of 51,900 sqm in H1 2024. This was the best result since H1 2022.
• National vacancy trended slightly down to 14.6% in June 2024, from 14.8% at the start of the year.  Australian CBD’s edged up to 13.6%, with supply outstripping net absorption.
• All CBD markets recorded positive prime net effective rental growth in Q2, as sentiment improved in some of the weaker performing markets. Brisbane remains the outperformer in Australia.
• Sales volumes improved in Q2 2024 as buyer sentiment improved off the back of a stabilisation in interest rates.
• Yields continue to soften with more sales evidence providing new pricing benchmarks