Canberra Office Figures Q4 2023

February 1, 2024 7 Minute Read

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·       Overall net absorption in Canberra totaled 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.

·       New supply in Canberra totalled only 15,394 sqm in 2023 after several large projects were delayed and pushed to 2024. The current expectation is that new supply will total 99,118 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 continued to trend upwards in 2023.

·       Canberra office sales totalled AUD 350.3 million over the first three quarters of 2023. Indicative yields continued to rise over the year. Prime Civic and Non-Civic yields ended Q3 2023 at 6.6% and 6.8%