Australian Office Figures Q3 2024

Key Points:

• Labour market has remained relatively resilient, with unemployment in August 24 at just 4.2%, and job growth of 2.7% y-o-y. 
• National rental growth reached 5.3% y-o-y (effective rent), driven by Brisbane and Sydney.
• Incentives have trended up in all markets outside of Brisbane in Q3, although Sydney Core precinct declined.
• Australian CBD’s recorded 31,825 sqm of net absorption in H1 2024, the best result in 2 years.
• Overall CBD vacancy showed signs of stabilisation at 13.6% in June 2024, from 13.5% at the start of the year.  
• The investment market is improving steadily, although most of the activity remains in Sydney.
• Prime yields softened by 12 bps in Q3, although some markets have stabilised are likely to be at their trough.