悉尼中央商务区写字楼市场2025年8月

Strengthening occupier market, with highest level of annualised netabsorption recorded since 2016. Investor and occupiersfavourquality assets in amenity richlocations Marco MascitelliAssociate Director, RESEARCH & CONSULTING Three year premium gradenet absorption Sqm of premium supplyunder construction Drop in premium vacancy Premium vacancy declined from 13%to 9.8% since January 2024. Premium grade stock hasoutperformed over the last three years,specifically in the core precinct,driving overall absorption levels acrossthe CBD. Total premium office space underconstruction between 2025-29 inSydney CBD, with limited availablespace to lease 2025 YTD transactionvolumes Rental growth in the core Sqm occupier briefs Occupier enquiry has been healthywith over 400,000sqm of active tenantbriefs tracked over the last 12 months,underpinning strengthening demand. Prime net effective rents have grownby 4.3% in the core over the year, thestrongest level of growth across allprecincts. Transactional activity so far this yearhas been driven by offshore capital.Activity is expected to pick up over thesecond half of the year, following aquiet Q2. There has been solid signs of strengthening demand in theoccupier market with overall absorption levels for H1 2025positive, with 10,298sqm recorded. This takes annualabsorption to 56,532sq, the strongest period since 2016. Theabsorption levels have been driven by strong demand in thepremium market with 44,841 sqm recorded over the firsthalf of the year. The secondary market continues tohighlight the stark contrast between best in class assets andthe rest of the market as negative absorption of 23,579sqmwas recorded over the six months to July 2025. Occupier enquiry has been healthy with over400,000sqm of active tenant briefs tracked over the last 12months underpinning the improved market conditions andsentiment. In terms of lease deal volumes, direct leasingtransactions have accounted for the bulk of activity so farthis year. Notable deals include Teachers Mutual Bank securing4,957sqm at 10 Shelley Street, HWL Ebsworth Lawyerscommitting to 11,023sqm at 5 Martin Place and the Executivecentre taking 1,916sqm at 255 George street.Occupier demand trends for 2025YTD are driven by financial services and professional services accounting for33% and 34% respectively of total deal volumes. Demand isconcentrated within the CBD core precinct, accounting for60% of deal volumes. The structural shift of flight to qualityand amenity continues to drive the demand for qualityworkspaces located close to multiple public transportoptions, food and retail operators, green spaces and wellnessactivities. Despite the positive absorption levels, overall vacancymeasured 13.7% as at July 2025. A large influx of new supplyover the last 12 months, has totalled over 237,000sqm hashindered vacancy levels, despite positive demand. The levelof occupied stock has increased by 1.2% over the year, one ofits highest levels in nearly a decade. By grade, premium vacancy dropped from 10.8% to 9.8%over the year. In the secondary market, vacancy sits at12.9%. Notably, sublease vacancy across the market hasdropped to its lowest level since 2019 to measure 0.8%. Overthe last five years the flight to quality trend has becomeclear with absorption levels totalling negative 258,982 sqmin the secondary market, whilst the premium market hasexperienced positive absorption of 279,858 sqm over thesame period. This is further highlighted by demand levelsacross the precincts, with prime assets in the CBD Coreclearly outperforming the wider market as the only precinctto record positive absorption over the last five years. The clear distinction in demand between prime andsecondary assets has significantly influenced newdevelopments and refurbishments, as owners strive tomatch building quality, design, environmentalsustainability, and wellbeing with occupier preferences inthe CBD office market. Over the past 18 months, 170,000 sqm of newly developedpremium-grade office space has been delivered across thethree metro Over Station Developments, along with therecently completed 33 Alfred Street. Collectively, these fourassets have achieved a commitment rate over 90%. Additionally, boutique development 121 CastlereaghStreet (11,500sqm) by CBUS is now complete. In terms ofrefurbished stock, Charter Hall has completed its extensiverefurbishment of 1 Shelley Street (29,442sqm) with the assetachieving strong leasing and enquiry outcomes. Theseadditions have taken the total office stock base to its highestlevel on record of 5,367,514sqm, an increase of 3.7% of theyear. Looking ahead to 2027, only three buildings are currentlyunder construction. Charter Hall’s premium-gradedevelopment, Chifley South (42,000 sqm), is well advancedand has already secured 50% tenant commitments, withstrong leasing enquiry and limited pipeline, fullcommitment prior to practical completion is highly likely.Meanwhile, Mirvac’s 55 Pitt Street project