This article is from the Australian Property Journal archive
SYDNEY’S office occupancy is above 50% for the first time in almost a year, as all the major capitals saw an increase in workers at their desks.
The latest survey by the Property Council of Australia, tracking data in the last week of May, showed occupancy in the nation’s biggest city jumped from 42% in April to 55%. It is its highest reading since 67% was recorded in June last year, just prior to the delta lockdown.
Melbourne – which also endured an extended lockdown in 2021 – was up to 48%, for its highest reading since before COVID.
Adelaide returned the highest occupancy of the major capitals at 71%, followed by Brisbane with 64%, Perth with 63% and Canberra at 60%.
Property Council’s NSW executive director Luke Achterstraat said the results showed the Sydney CBD was recovering from the past two years.
“This positive lift has occurred at a time when COVID and now the flu are circulating widely, forcing many people and families to stay home or isolate, on top of some extremely wet weather on the east coast.
“To have a peak of 66% is very reassuring as more individuals and workplaces are embracing the benefits of face-to-face connection and that CBDs are regaining much of their vibrancy.
“However, it is critical the steady trickle becomes an even stronger stream. Some major employers have reported one in five of their staff have not been back to the office in months.
“It is important that complacency does not set in by public and private sector workers alike.”
Achterstraat said results also found an increase in preferences for greater flexibility including working from home.
“We all need to celebrate the unique dividends that come from face-to-face time with co-workers and customers.
“The coffee, lunch or newspaper we grab from CBD vendors has a flow-on effect, as does the impromptu chat in the breakout room with colleagues we have not seen for a while.”
While hybrid working has become the new normal, full-time working from home is likely to become increasingly rare in Australia and New Zealand, as a consensus is gradually reached on workplaces in the fallout from COVID.
CBRE’s latest Occupier Survey, occupiers are also re-examining their office footprints. One-third of Asia-Pacific respondents with at least one office in Australia and New Zealand now expect to expand, and for companies solely based in this region, 40% are leaning towards expansion, while 36% are leaning towards contraction. The national CBD office vacancy rate declined in the March quarter, recording a fourth successive quarter of positive net absorption, according to JLL.
