Outlook 2023 Australia

SYDNEY

DEMAND & VACANCY

NET ABSORPTION (SQM) AND VACANCY RATE (%)

FORECAST

150,000

14.0%

 Following a COVID induced drop in demand, employment growth and demand built as the economy reopened.  Office employment is expected to continue to expand in 2022 and over the next few years, however, net absorption will be constrained by the rise in flexible working with increasing risks to the growth outlook due to the surge in inflation over 2022 and associated rate rises.  While office demand should remain positive, relatively high levels of supply, particularly in 2024, should keep vacancy at above average levels for the next few years.

12.0%

100,000

10.0%

50,000

8.0%

0

6.0%

-50,000

4.0%

-100,000

2.0%

0.0%

-150,000

2020

2021

2022F 2023F 2024F 2025F 2026F Net Absorption Vacancy Rate

Source: Cushman & Wakefield