Asia Pacific Office Outlook 2024

SYDNEY

DEMAND & VACANCY

N E T A B S O R P T I O N ( S QM ) A N D VAC A N C Y R AT E ( % )

FORECAST

14.0%

250,000

12.0%

 Employment growth proved to be surprisingly resilient to several macroeconomic headwinds in 2023, supporting continued growth in net absorption.  Moving forward, the Sydney CBD is expected to benefit from a surge in overseas migration, though demand for office space may be constrained by the rise in flexible working.  High levels of supply in 2024 combined with a slightly weaker outlook for employment in the medium term should hold vacancy above 10% through 2025.

200,000

10.0%

150,000

8.0%

6.0%

100,000

4.0%

50,000

2.0%

0.0%

0

2021

2022

2023F 2024F 2025F 2026F 2027F Net Absorption Vacancy Rate

Source: Cushman & Wakefield