Australian Office Figures Q4 2023

February 2, 2024 7 Minute Read

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  • The labour market has shown some signs of weakening, with about 65,000 jobs lost in December and the unemployment rate edging up to 3.9%.
  • Office demand softened in H2 2023, with -184,000 sqm of net absorption across all Australian markets. Prime absorption remained positive at 51,600 sqm over the 6-month period.
  • National vacancy edged up to 14.8% in December 2023, from 13.4% a year ago.  Australian CBD’s (13.5%) remain tighter than non-CBD’s (17.9%).
  • Australia remains a two-tiered market from a rental growth perspective, with Brisbane, Perth and the Sydney CBD Core performing well, while Melbourne and Adelaide lag.
  • Sales volumes in Q4 were below average, although some more sales evidence is trickling through.
  • Yields continue to soften across the board, although the interest rate outlook has improved.