北岸写字楼市场2025年8月

Clear divide in demand as occupiers and investors favour best inclass assets Improving sentiment and outlook bodes well for occupier andinvestor demand over H2 2025 Marco MascitelliAssociate Director, RESEARCH & CONSULTING Premium grade vacancy Prime net absorption Elevated incentive levels In North Sydney, lowest compared toall CBD precincts and other majorNSW markets. Positive net absorption overH1 2025 inthe North Sydney prime market. Prime grade incentives averaging 40%across the North shore markets. Transaction volumes Annual face rental growth Yields softening Prime net face rents average $930/sqmin North Sydney, an increase of 2.3%y/y. Deal volumes over 2024-25FY. Activityis expected to pick up over the secondhalf of the year. Yields continue to soften across theNorth Shore markets, in particularNorth Sydney yields have softened40bps overH1-25. There is a stark contrast in occupier demand across NorthSydney between the differing grades. With positive deal flowand enquiry across the prime market, positive absorption of8,069 sqm was recorded over the first half of 2025. This hasresulted in prime vacancy declining from 17.8% to 15.7% overthe first half of the year. In contrast, the secondary market,where occupier demand is more subdued, recorded negativeabsorption of 11,582 sqm over H1 2025. Analysing demand even further, premium-grade stock is inhigh demand, with vacancy tightening to just 0.9%,underscoring a clear divergence in market performance.Occupiers are prioritising high-quality office environmentsthat offer superior amenity and connectivity, reinforcing theappeal of best-in-class buildings. Top-tier assets in North Sydney—100 Mount Street, 1DenisonStreetand118 MountStreet;areconsistentlyachieving high occupancy rates. The Sydney Metro andVictoria Cross Station have further enhanced NorthSydney’s accessibility, strengthening its long-term appealfor occupiers. Following a pause in development activity since 2023, NorthSydney’s total office stock currently stands at 912,690 sqm.As the third-largest metropolitan office market in NewSouth Wales, North Sydney continues to evolve, with prime-grade assets now accounting for 43% of total stock—upsignificantly from 27% a decade ago. The next major addition to North Sydney’s office supply isVictoria Cross OSD, a 55,000 sqm development byLendlease, scheduled for completion in Q1 2026. Beyondthis, Affinity Place (59,000 sqm) has received DA approvaland is actively seeking pre-commitments. While severalother schemes remain in early planning stages, they areunlikely to deliver new stock before 2029, providing themarket with time to absorb existing supply. There has been moderate growth in face rents in NorthSydney, with average prime net face rents increasing by2.3% over the year to reach $930/sqm ($1,100/sqm gross) asof July 2025. In the secondary market, growth has beenlimited to 0.5% over the year, with current rates measuring$742/sqm ($896/sqm gross face). Prime incentives edged higher over the year to now average39.5%, resulting in a 1.4% decline in net effective rents,which now average $505/sqm. Incentives have likely peakedand are expected to stabilise over the near term, paving theway for net effective rents to return to growth. Macquarie Park’s overall vacancy reached a record high of22.2% in July, following a brief period of easing sinceJanuary 2024. Net absorption in the first half of 2025 wasreported at negative 30,890 sqm. Direct vacancy rose from17.9% to 20.8%, while sublease vacancy edged up to 1.4%over the six months to July. The surge in vacancy was primarily driven by weak demandin the secondary market, where the vacancy rate increasedfrom 18.1% to 26.1%, accompanied by negative netabsorption of 21,683 sqm in H1 2025. Meanwhile, primevacancy rose from 19.2% to 20.6%, with negative netabsorption of 9,207 sqm. Macquarie Park is now the largest metropolitan officemarket in NSW, surpassing Parramatta and North Sydney intotal stock. Looking ahead, construction is scheduled forcompletion in the second half of 2025 at Stockland’sM_Park,located at 15 and 17 Khartoum Road (approximately 25,000sqm). Notably, 17 Khartoum Road has been fully committedby Johnson & Johnson. More recently, pathology providerDouglas Hanly Moir leased 6,200 sqm of office andwarehouse space at Stockland’s 16 Giffnock Avenue. Reflecting subdued demand and elevated vacancy, net facerents remained flat in H1 2025, averaging $470/sqm($595/sqm gross face) for prime assets and $393/sqm($518/sqm gross face) for secondary. In line with other NorthShore markets, incentives rose from 38.0% in January to40.0% in July. However, landlords are offering even higherincentives to retain and attract occupiers, as the influx ofsupply over recent years has intensified competition amongprime buildings. The increase in incentives has impacted effective rents, withprime net effective rents declining by 3.2% to $282/sqm inH1 2025. With more prime space expected to come onl