Outlook 2023 Australia

SYDNEY

RENT GROWTH

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

FORECAST

4.0%

1,000

 After declining over 2020 and 2021, Sydney prime gross effective rent is expected to return to growth in 2022.  The increase is driven by face rent growth and the completion of two new premium grade buildings, which have lifted the average prime rent.  Rent incentives, after rising sharply through the pandemic, have stabilised at around 34 to 35%.  With vacancy expected to remain at above average levels, incentives are unlikely to fall in the near term.

2.0%

980

0.0%

960

-2.0%

940

-4.0%

920

-6.0%

900

-8.0%

880

-10.0%

860

-12.0%

840

-14.0%

2020

2021

2022F 2023F 2024F 2025F 2026F AUD/SQM/YR Rent growth (%)

Source: Cushman & Wakefield