2025-03-17-莱坊-Canberra_Office_Market_March_2025_6页_1mb

Canberra Office Market Summary

Overall Market Performance

The Canberra office market shows sustained growth driven by strong occupier demand, which supports rental increases and investor confidence. Overall vacancy rate dropped to 9.2% by January 2025, the lowest since July 2021, and below the 10-year average. Prime and secondary net face rents increased by 2.8% and 2.3% respectively in the 12 months to January 2025, led by demand in key precincts.

Key Trends in Rental Growth

Positive demand from both public administration and private sector tenants has boosted rental growth. Prime net face rents averaged $462/sqm, up 2.8%, while secondary rents climbed 2.3% to $365/sqm. Incentives rose slightly to 27.6% in January 2025, reflecting market competition but stable fundamentals.

Vacancy and Supply Dynamics

Vacancy rates remain historically low: parliamentary precincts at 2.9%, city areas at 10.7%, and town centers at 9.5%. New supply additions in the second half of 2024 included renovations and developments, adding net space. Future supply forecast at ~104,000 sqm over 2025-2026 will provide opportunities for prime office space in tight submarkets like parliamentary precincts, which have the lowest vacancy.

Investment Activity

Investment volumes surged in 2024, reaching $276 million from $90 million in 2023. Core market yields stabilized at 7.13% for prime and 8.50% for secondary in parliamentary and civic precincts since July 2024. Notable transactions include acquisitions by Growthpoint and EG Funds, impacting capital values due to yield softening. Yields in town centers remained stable, offering better spreads compared to other areas.

Outlook and Forecasts

Economic recovery and improving investor confidence are expected to increase deal flow in 2025. The development pipeline supports long-term growth, with supply concentrated in civic and parliamentary submarkets, benefiting from historically limited availability.