Canberra CBD Office Figures Q4 2024

Key Points:

• Leasing demand was robust across Canberra over the second half. Overall net absorption totaled 20,419 sqm in H2 2024, with the bulk of activity in higher grade properties.
• Canberra saw new deliveries in line with the trailing 10-year average in 2024. New supply totalled 53,985 sqm over the year. New supply is expected to near all-time highs in 2025.
• Canberra’s overall office vacancy rate ended 2024 at 9.2%. This figure represented a decrease of 30 bps compared to mid-year.
• Gross rental rates increased over Q4 2024 while incentives held stable. This resulted in net effective rents increasing by 1.4% over the quarter.
• Canberra office sales totalled AUD 323.1 million in 2024. This marked a slight decline year-over-year. Yields also increased marginally over 2024. Prime Civic and Non-Civic yields ended the year at 7.3% and 7.6%, respectively.