ASIA PACIFIC OUTLOOK 2025

MELBOURNE

RENT GROWTH

Net effective prime rents in the Melbourne CBD have been declining since 2022, though the decrease has been modest. Rent growth has remained limited, primarily driven by rising face rents, while prime incentives increased as the market absorbed existing stock. Rent growth is expected to reach its lowest point in 2024 as incentives stabilise, followed by a gradual upward trend. A strong labour market and steady demand are projected to support rental growth, with net effective rent growth anticipated to peak in 2028.

20.0%

600

FORECAST

15.0%

500

10.0%

400

5.0%

300

0.0%

200

-5.0%

100

-10.0%

0

2022 2023 2024F 2025F 2026F 2027F 2028F 2029F

AUD/SQM/YR

Rent growth (%)

RENT (AUD/SQM/YR) AND RENT GROWTH (% PER ANNUM)

Cushman & Wakefield

ASIA PACIFIC OUTLOOK 2025

Source: Cushman & Wakefield