Canberra CBD Office Figures Q2 2024

Key Points:  

• Leasing demand remained steady across Canberra in H1 2024. Leasing enquiry volumes totaled 108,683 sqm over the period, an increase of 72.5% compared to H1 2023. Overall net absorption totaled 6,109 sqm in H1 2024, with the bulk of activity in higher end properties.
• Canberra saw the first deliveries of its upcoming supply wave in H1 2024. New supply totalled 37,037 sqm over the period.
• Canberra’s overall office vacancy rate ended H1 2024 at 9.5%. This figure represented an increase of 116 bps from year-end 2023. This increase was due largely to new supply delivered over the period.
•  Despite increases to vacancy rates, gross rental rates increased in Q2 2024 while incentives remained table. This allowed net effective rents to increase marginally over the quarter.
• Canberra office sales totalled AUD 103.2 million in H1 2024. Cap rates also continued to rise in Q2 2024. Prime Civic and Non-Civic yields ended the half at 7.1% and 7.3%.