Asia Pacific Office Outlook 2024

SYDNEY

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 )

FORECAST

10.0%

1,400

8.0%

1,200

 Prime rental growth in the Sydney CBD continued to gain momentum in 2023, as gross effective rents increased 7.5% over the year.  The increase is driven by face rent growth and recent refurbishments, which have lifted the average prime rent.  Rent incentives, after rising sharply through the pandemic, have stabilised at around 35%.  Incentives are likely to begin to trend lower beyond 2024, ultimately settling around 32% by 2027.

6.0%

1,000

4.0%

800

2.0%

600

0.0%

400

-2.0%

200

-4.0%

-6.0%

0

2021

2022

2023F

2024F

2025F

2026F

2027F

AUD/SQM/YR

Rent growth (%)

Source: Cushman & Wakefield