Insights
Australia Office
Outlook 2024
Rough seas make stronger sailors
Cushman & Wakefield’s Australia Office Outlook provides a forecast of key office metrics, including supply, demand, vacancy, rents and incentives, for the Brisbane, Melbourne, Perth and Sydney CBDs.
Key Messages:
- Inflation has been stickier than expected, delaying expectations of an RBA pivot. Although higher interest rates are beginning to take a toll on households, population growth will ultimately be the cushion that eases the Australian economy into a soft landing.
- An extraordinary run of employment growth hasn’t translated into occupancy to date. Some markets are seeing demand build up in the pipeline as tenants have continually delayed leasing decisions since the pandemic, and this is likely to provide some support to absorption in 2024, though vacancy will remain elevated in most markets.
- Rental growth momentum has carried through 2023. The continued flight to quality will drive growth in premium face rents, though likely at a slower pace than seen in 2023 in most market. Incentives will remain stubbornly high, especially as some markets are set to experience an uptick in new supply.
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