- Perth's occupancy rate has increased from 65% to 71%
- Perth and Canberra were the only capital cities to record an increase in occupancy during July
- Many of the eastern city markets have been impacted harder by the Omicron and flu waves
Office occupancy levels have surged in the Perth office market, with the strongest recorded occupancy rate since November 2021.
The survey, conducted by the Property Council, found that the occupancy rate in Perth was the highest in the country, increasing from 65% to 71%. Canberra was the only other capital city to record an increase.
Melbourne saw a decline from 49% to 38%, Sydney from 55% to 52%, Brisbane 64% to 53% and Adelaide from 71% to 64%, with the most recent wave of Omicron and flu infections impacting infection rates.
Property Council WA Executive Director Sandra Brewer said the data shows that the Perth CBD is on the right track.
“The figures reflect what we are all seeing and feeling, there is a real buzz in the city, and workers are coming back in droves,” she said.
“Month on month, we are seeing occupancy levels improve.
“With spring around the corner and the omicron wave reportedly having peaked, the settings are right for Perth to end the year with occupancy level back at peak levels by the end of the year.”
Office occupancy rate
|
Market |
Melbourne
CBD |
Canberra |
Sydney
CBD |
Brisbane
CBD |
Perth CBD |
Adelaide
CBD |
| Jul-20 | 20% | 49% | 36% | 48% | 67% | 62% |
| Aug-20 | 8% | 53% | 33% | 50% | 61% | 68% |
| Sep-20 | 11% | 51% | 39% | 58% | 70% | 74% |
| Oct-20 | 8% | 70% | 44% | 68% | 85% | 81% |
| Nov-20 | 14% | 72% | 50% | 68% | 85% | 76% |
| Jan-21 | 34% | 76% | 50% | 70% | 74% | 77% |
| Feb-21 | 27% | 72% | 54% | 72% | 72% | 77% |
| Mar-21 | 39% | 72% | 56% | 69% | 79% | 79% |
| Apr-21 | 45% | 70% | 65% | 70% | 78% | 78% |
| May-21 | 45% | 71% | 68% | 71% | 77% | 78% |
| Jun-21 | 26% | 72% | 67% | 71% | 76% | 80% |
| Jul-21 | 12% | 73% | 7% | 67% | 78% | 15% |
| Aug-21 | 7% | 8% | 4% | 60% | 77% | 65% |
| Sep-21 | 6% | 8% | 4% | 51% | 76% | 64% |
| Oct-21 | 4% | 7% | 8% | 57% | 79% | 64% |
| Nov-21 | 12% | 17% | 23% | 63% | 77% | 73% |
| Jan-22 | 4% | 7% | 7% | 13% | 66% | 11% |
| Feb-22 | 15% | 21% | 18% | 41% | 55% | 47% |
| Mar-22 | 32% | 45% | 41% | 48% | 45% | 61% |
| Apr-22 | 36% | 39% | 42% | 51% | 50% | 59% |
| May-22 | 48% | 60% | 55% | 64% | 63% | 71% |
| Jun-22 | 49% | 53% | 55% | 64% | 65% | 71% |
| Jul-22 | 38% | 61% | 52% | 53% | 71% | 64% |
Source: Property Council of Australia
Ms Brewer added there are more reasons to be bullish about the Perth CBD, noting that the ANZ/Property Council Office Market Report July results showed the demand for office space grew during this time.
“Tenants are jumping at the opportunity to take up new space, sub-leasing rates are the lowest of all tracked markets and demand is well above historical levels,” Ms Brewer said
“The results, released last week, showed that demand for office space across Perth over the past six months has increased by a healthy one percentage point, double the national increase.
“With so many reasons to be optimistic about the future, it is essential not to take our foot off the accelerator. Our CBD and the many small, medium and large businesses that call it home need feet on the footpaths to survive.”
