Canberra Office Figures Q1 2024

Key Points:

• Overall net absorption in Canberra totalled 17,251 sqm in H1 2023 and -14,121 sqm in H2 2023. This brought the annual total to a slightly negative -3,130 sqm. The 2023 total was equivalent to only 0.1% of the market’s office inventory.
• No new office developments were delivered in Q1 2024. New supply is forecast to total 106,119 sqm in 2024, which would be the second largest annual total in the last 10 years.
• Canberra’s overall office vacancy rate ended 2023 at 8.3%. This figure represented a slight increase of 8 bps from H1 2023.
• Gross rental rates and incentives both remained unchanged over Q1 2024.
• Canberra office sales totalled AUD 25.0 million in Q1 2024. Indicative yields continued to rise over the period. Prime Civic and Non-Civic yields ended Q1 2024 at 6.9% and 7.0%.