• Improved business sentiment will continue to support the labour market in the short term, but the medium-term outlook remains challenging.

 

  • Net face rents held steady across the board, except for Melbourne and Canberra, increasing 2.7% and 0.7% q-o-q in secondary grade.

 

  • Incentives have continued to rise across in most markets, particularly in Canberra and Melbourne across Q1 in prime incentives.

 

  • Sublease availability recorded a quarterly fall of 2%, down 2.5% from its previous peak in January 2021.

 

  • Sales volumes as of Q1 were $2.8 billion across 26 transactions highlighting continued investor demand for Australian office.

 

  • Prime yields remained relatively stable whilst secondary yields softened marginally.