Australia office completions below 10-year historical average

The new completions in H1 2024 are 56% below the average.

Over Q2, Colliers data reveals that only 82,700 sqm of office space completed and entered stock in Australia, primarily due to Melbourne Quarter Tower (69,000 sqm) reaching practical completion in the Melbourne CBD. 

Whilst H1 additions are now 56% below the 10-year historical average, 2024 will end 6.4% above the annual average due to the completion of the Sydney CBD over station developments (155,000 sqm) which currently stand at 85% committed. 

“Beyond 2024 the pipeline is scarce with development feasibility under pressure with construction costs still elevated and the required pre-commitment level harder to achieve. Only 254,200 sqm of supply additions are forecast for 2025, 60% below the 10-year annual average. We expect the lack of new supply to create tighter vacancy conditions across prime grade,” Colliers added.