Building

Perth office market vacancy on steady climb down

Results from the July 2018 Property Council Office Market Report confirms Perth has passed peak vacancy and is now on a steady climb down.

The Perth CBD office vacancy rate dropped from 19.8 per cent to 19.4 per cent in the six months to July 2018.

“The results reconfirm that the Perth vacancy rates have passed its peak vacancy with both CBD and West Perth experiencing further declines in vacancy,” Property Council WA Deputy Executive Director Emma Thunder said.

“However, Perth still has the highest vacancy rate of any capital city and is significantly higher than the national average of 9.1 per cent.

“There is a continued flight to quality, with demand remaining strong in prime stock. The main concern is around the secondary stock and how this market can be assisted.

“Perth’s secondary stock market has some of the highest vacancy rates in the country. The challenge now is to find innovative solutions to attract people back into these buildings.

“The challenge now is to find innovative solutions to attract people back into these buildings.

“We are at a special time in the office market cycle where we have an unique opportunity to encourage owners, occupiers and the Government to come up with solutions and new business models that would help drive the activation of these buildings,” Ms Thunder said.

Source: Property Council of Australia