Asia Pacific Office Outlook 2024

MELBOURNE

RENT GROWTH

R E N T ( AU D / S QM / Y R ) A N D R E N T G R OWT H ( % P E R A N N U M )

 Net effective prime rents in the Melbourne CBD maintained momentum in 2023, increasing 6%.  Growth was largely driven by rising face rents, as prime incentives were up by circa 50 basis points as the market continued to digest

FORECAST

600

10.0%

8.0%

500

6.0%

400

4.0%

2.0%

the surge in supply from 2020 and 2021.  A dearth in new supply should see incentives stabilise in 2024 before starting to trend lower thereafter.

300

0.0%

200

-2.0%

-4.0%

100

 Meanwhile, a robust labour market should support rental growth; net effective rent growth is expected to average 6.3% annually from 2024 to 2027.

-6.0%

0

-8.0%

2021

2022

2023F

2024F

2025F

2026F

2027F

AUD/SQM/YR

Rent growth (%)

Source: Cushman & Wakefield