The organisation’s office market report revealed that markets nationwide defied a generally gloomy economic backdrop to reach vacancy levels lower than at any point over the past three years.
Vacancy rates reportedly fell on average at similar rates in both central business districts (CBDs) in cities and suburban office markets on the outskirts of more heavily urbanised areas. The sharpest demand for new offices was recorded in the cities of Brisbane and Perth, which are located respectively on the country’s far east and western edges.
“Despite the global gloom, negative business and consumer sentiment, the halting recovery from natural disasters and a tetchy political environment, the demand for space increased and vacancies fell,” said the property council’s chief executive, Peter Verwer.
In the six months being analysed, Sydney and Darwin were the two notable exceptions in a general trend towards declining office space vacancies within CBDs across Australia.
Among the other noteworthy trends identified by the council’s latest report was landlords’ increasing refurbishment of their premises in anticipation of rising demand for their offices over the coming quarters.
“Property owners see the opportunity to improve the competitiveness of older buildings in time for an uptick in demand driven by stronger economic fundamentals,” Mr Verwer remarked.
The Australian economy has struggled to maintain growth in recent months as adverse economic headwinds hindered activity within many of the country’s most important industry sectors.