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Data from the Property Council of Australia (PCA) shows that the national office vacancy rate rose from 9.6% to a 24-year high of 11.7% in the six months to 31 January.
The CBD vacancy rate rose to a six-year high of 11.1%. Sydney and Melbourne were the only major CBD office markets that recorded single-digit vacancy rates for the period, at 8.6% and 8.2% per cent respectively.
PCA CEO Ken Morrison says the addition of new office buildings to the market rather than reduced demand due to COVID-19 was the major driver of the rise in vacancy rates.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.