Empty office conversions to worsen apartment oversupply

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According to a recent poll from Roy Morgan, around three quarters of central workers in Melbourne are reluctant to return to the office full time, with 30% wanting to work full-time from home and over 40% wanting to split work time between home and the office.

The widespread adoption of working from home is, therefore, predicted to make many office buildings redundant. Accordingly, property investors are already transforming these office buildings into residential apartments:

Architects and developers claim there is strong and growing demand for customised conversion of low-rise offices… particularly around Melbourne and Sydney…

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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.