No Surprises
In looking at the PCA OMR vacancy numbers for the 6 major capital city CBD’s, it’s all straight forward. One can talk it up or down but there were no surprises.
Source: Property Council of Australia Office Market Report 1990-2025
Vacancy increased marginally in Sydney, Perth, Canberra, and Brisbane.
Vacancy decreased in Melbourne but not by much. We are still barracking for Melbourne’s turnaround. But we have to admit, we have also been barracking for Carlton’s forever. Hopefully Melbourne’s turnaround does not take as long. Next year?
Vacancy decreased in Adelaide for the fourth 6 monthly period in a row. For some time, we have seen Adelaide as the steadiest of the capitals and it showed its sturdiness once again. Last year we noted its “maturity” and it’s showing up its friends elsewhere again. The benefits of being outside the eastern seaboard bubble?
In looking at the graph above, the markets seem to be moving in unison when compared to the huge differences in vacancy between the various capitals in the early 1990’s. Is this because Covid was a national matter and affected all of the markets, how people work, and how office space is used? There could be a number of reasons at play.
Whatever happens in the coming years, it will be different to how it has been.
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