Sydney CBD Office Figures Q4 2024

Key Points:

• Leasing demand has remained mixed across the Sydney CBD in 2024 with the greatest demand being seen for higher quality and well-located stock.
• Several large-scale developments were delivered to the Sydney CBD over H2 2024. New supply totalled 164,552 sqm in 2024, which was 33.1% higher than the trailing 10-year average.
• The overall CBD vacancy rate ended the year at 12.8%. This marked an increase of 118 bps from mid-year 2024. Increases to vacancy rates were largely brought on by the elevated levels of new supply delivered to the market over the second half.
• The rental rate and incentive landscape continued to bifurcate across CBD precincts. The Core and Walsh Bay precincts have continued to outperform, whereas the Western Corridor remains challenging.
• The Sydney CBD saw investment volumes reach AUD 4.4 billion in 2024. Cap rates increased marginally in Q4 2024, although yields now appear to be nearing their peak.