Rubberdesk Sees Strong Supply Growth across Sydney, Melbourne and Brisbane in Q2
Australian major office markets show strong signs of recovery with highest demand for mid-sized offices since April 2020.
Wednesday, 13th July 2022 | Press
Latest figures from Rubberdesk’s June 2022 Flexible Office Market Report shows that demand across all CBDs has increased over the last three months, boosting confidence amongst Workspace Operators. As demand continued to grow across NSW, prices in Sydney rose 4.5% to settle at $900 per person, after reaching a new pre-pandemic high of $930 in May.
“We’ve seen market pricing reset from the lows of last year as confidence returns, but it’s not been a consistent theme. Sydney, the largest Australian Flex market, has bounced back strongest with demand high, vacant space down 22% and prices up 4.5%.” Said Jim Groves, CEO of Rubberdesk.
Brisbane saw the highest increase in cost of 11-15 person offices, with a 60% jump and a median office rate of $916 per person per month. Sydney followed with a 22% increase and a median of $1,155 amongst the 11-15 person offices.
“Melbourne, the next biggest market, has seen softer demand and vacant space actually increase 10%, a trend also seen in Brisbane. Our forecast for the coming quarter is for Flex demand to continue to increase and with it prices,” Mr Groves said.
Strong supply growth across Sydney, Melbourne and Brisbane in Q2
In Sydney, The Commons opened two new centres on George Street and Surry Hills, Tank Stream Labs opened 4,000 sqm in Haymarket; The Work Project opened at 50 Bridge Street in the brand new Quay Quarter Tower and Work Club Global recently opened at 200 George Street.
In Melbourne, Spaces opened in Collingwood and The Loft Workspaces launched a new offering on Chapel Street adding 3,243 sqm of flexible office space. There was also substantial expansion in suburban areas with Workspace365 at Geelong and Hub Australia announcing plans for a Box Hill location.
Brisbane’s newest coworking operator MOBO Cowork will soon open in the brand new MOBO building above South Bank, and Spaces opened two new locations in Fortitude Valley and the CBD.
The report also found that the amount of vacant flexible office space fell nationally, for a second consecutive quarter, to 156,875 sqm after months of work from home requirements eased. Fueled by higher prices in Brisbane and Sydney, up 12.7% and 4.5% respectively, the national price to rent a desk in a private office space edged upwards by 2.2% to $613.
Market Summary
- Nationally, demand for flexible office space continues to grow with high demand in Sydney & Brisbane
- Sydney prices jump 4.5% to $900 per desk based on higher demand for midsize offices
- Melbourne office supply up 10% as demand remains flat
- Brisbane prices climb 13% on increased demand to $690 per desk
- Prices in North Sydney Fall for 2nd Consecutive Quarter to $483 per desk
- The median office price for Perth remains unchanged at $600 per desk
- Canberra prices jump 6% to $518 per desk QoQ
- Prices in Adelaide continue upward trend to settle at $557 per desk
Download the Flexible Office Market Report today.
About Rubberdesk
Rubberdesk is Australia’s flexible office marketplace with thousands of fully furnished serviced offices and coworking desks ready for you to move in and rent by the month or year. Our proprietary platform combined with industry insights from our office specialists helps you find the best office for your needs.
With a view across all available options, we simplify the process to create a bespoke shortlist, arrange tours and negotiate the best deals. All for free and without obligation.
As well as being the proud partner of Cadigal, Rubberdesk provides Flex Powered by Rubberdesk for commercial agents across Australia and also exclusively powers flexible workspace for Commercial Real Estate.
Rubberdesk also operates in the UK and Ireland.
For further information, images and interview requests, please contact Jim Groves at Rubberdesk:
- E: [email protected]
- T: 1300433757
