perth cbd buildings
Image – Canva.
  • 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

sandra brewer
Sandra Brewer. Image – Property Council.

“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.”



You May Also Like

Australia’s return to office continues to shine as the US stagnates at 50 per cent of pre-Covid levels

The Australian office market records improved office occupancy while the United States lags behind on the return to office.

Work from home is here to stay, and Australia’s secondary offices are at a turning point

Secondary office assets face challenges with poor uptake and declining values, especially in B and C-grade properties.

Why Australia needs more industrial assets to boost productivity and growth

A new report reveals that Australia’s industrial assets handle over $1.2 trillion worth of products annually.

Sydney’s retail sector continues to improve, with one area boasting zero vacancy

Vacancy rates for Sydney’s prime retail core have dropped to 8.3%, with the one area recording vacancy rates of zero.