Overview

• CBD vacancy rates climbed to 14.3% in the first half of 2025, the highest level since 1995
• Sydney’s office vacancy rate jumped nearly one percentage point, while Melbourne’s CBD now sits at 17.9%
• Developers added about 2.6 million square meters of office space since 2020, including 200,000 sqm in the past six months
• Roughly 30% of Australian workers continue to operate remotely, with lower-grade offices most affected by rising vacancies
• Despite overall oversupply, tenants are concentrating on premium CBD properties, sustaining strong demand for high-quality space