2026-02-12-莱坊-Australian_Office_Indicators_Q4_2025_7页_1mb

Australian Office Market Summary - Q4 2025

Core Content Overview

The Australian office market in Q4 2025 is marked by strengthening demand, rising rents, and a tightening supply pipeline, particularly in major CBDs. This has led to a rebound in investment activity and increased net absorption in most capital cities. However, vacancy rates remain elevated, especially in the CBDs, and market performance varies significantly by location.

Main CBD Office Market Trends

Net Absorption Growth

• Australian CBD office net absorption rose by 71,541 sqm in H2 2025, bringing the annual absorption to 135,279 sqm, the highest since H1 2022.
• Positive absorption was recorded in all main CBD locations, with Sydney, Melbourne, Brisbane, and Adelaide leading the recovery.
• Vacancy rates in the CBDs increased by 0.5% to 14.8% in H2 2025, primarily due to new supply deliveries in Melbourne, Brisbane, and Adelaide.

Rental Performance

• Prime office rents have seen significant growth, especially in Adelaide and Brisbane, with annual effective rent growth reaching 11.4% and 11.6% respectively.
• Sydney and Melbourne also showed strong rental growth, with Sydney's core precincts and Melbourne's Eastern Core outperforming other areas.
• Core precincts in Sydney and Melbourne saw net effective rent growth of 11.8% and 10.7% over the past year, respectively, creating a 55% and 75% gap in rent levels compared to non-core areas.
• Incentives were broadly stable, with Sydney's Core and Barangaroo seeing a slight tightening.

Supply Outlook

New Supply Pipeline

• The national office supply pipeline is expected to dwindle over the next five years, with new developments in major CBDs forecast to deliver ~680,000 sqm of new supply over the next three years — close to half the 10-year average.
• Sydney, Brisbane, and Perth have the thinnest supply pipelines, due to high construction costs, elevated funding costs, and higher cap rates.
• These pressures have increased economic rents, making new developments less feasible and concentrating tenant demand into existing buildings.

Investment Activity

Transaction Volumes

• CBD office investment activity reached $2.4 billion in Q4 2025, with Sydney leading the activity due to the sale of two major stakes in Grosvenor Place.
• Total CBD office investment volumes in 2025 were $5.4 billion, slightly below $7.1 billion in 2024, but increasing investor confidence is expected to drive a continued pick-up in deal momentum in 2026.
• Sydney CBD core yields tightened by 5 bps in Q4, while other CBD locations saw little change, indicating stabilisation of core asset values.

Vacancy Trends

Vacancy Rates

• CBD vacancy rates rose to 14.8% in H2 2025, while non-CBD markets saw a higher increase to 18.5%.
• Canberra and Brisbane have the lowest vacancy rates at 10.2% and 11.8%, respectively.
• Adelaide showed the strongest improvement, with vacancy falling 0.9% to 15.5%.
• Sydney CBD remained stable at 13.8%, while Melbourne and Perth had higher rates at 19.0% and 16.9%.

Key Data Points (Q4 2025)

Recent Transactions

Outlook for 2026

• Positive absorption is expected to continue, combined with declining new supply, leading to a fall in CBD vacancy rates and further rent growth.
• Investor confidence is growing as asset valuations stabilize, and core CBD assets are seen as more attractive, with tighter yields and stronger demand.
• Core vs non-core performance continues to widen, with core rents significantly outpacing non-core.
• Economic rents remain high, making new premium office developments less viable, and concentrating demand into existing high-quality buildings.