Outlook 2023 Australia

KEY MESSAGES BRISBANE

SUPPLY

DEMAND

RENTS

 The redevelopment of the Eagle Street area, together with the ongoing flight to quality, will reinforce the “Golden Triangle” as the destination precinct within Brisbane’s CBD, bringing together high quality office buildings with amenity and transport infrastructure. KEY OUTLOOK

 No new supply is forecast to enter the Brisbane CBD market before an above average 80,000 sqm across two projects expected in 2024.The projects are 50% pre-committed.  After 2022, new supply is forecast to decline to an average of nearly 45,000 sqm per year for the next four years.

 After rebounding from COVID lows in 2021, net absorption is expected to reach 55,000 sqm in 2022 before slowing to 20,000 sqm in 2023.  As a result of no new supply in 2023, vacancy is expected to decline to 13% by the end of that year and then largely track sideways over the next few years.

 After declining around 5% in 2021, prime gross effective rents are forecast to grow by 3% in 2022, and then average around 3% per annum over the next five years.