Five office projects currently under construction in Sydney CBD

These will yield over 198,000sqm of new stock.

According to a JLL report, there were no completions and no withdrawals in the Sydney CBD’s office market over Q3 2025. Presently, there is 198,200 sqm of stock under construction across five projects with delivery between Q4 2025 and Q4 2027. There were no completions in the non-CBD office markets.

“There is currently 140,200 sqm under construction in the non-CBD markets with the largest project under construction being Victoria Cross Tower, 155 Miller Street, North Sydney (57,065 sqm),” the report added.

Here’s more from JLL:

The Sydney CBD recorded 36,100 sqm of positive net absorption over Q3 2025. This was predominantly driven by large tenant (>1,000sqm) demand as centralisation continues with tenants looking to relocate into high quality space.

Four out of the ten Sydney office markets have recorded positive net absorptions over Q3 2025. The strongest result outside the Sydney CBD was Parramatta, which recorded 8,200 sqm of net absorption while the weakest result was in Sydney Fringe (-7,800 sqm).

Prime yields were unchanged over the quarter in the Sydney CBD market

Sydney CBD Core prime net face rents grew 1.6% over the quarter and by 4.9% over the past twelve months. The strong rate of growth is being supported by solid leasing activity in Premium and higher quality A-Grade stock. Prime incentives marginally decreased to 32.9% over the quarter.

Rental performance in the non-CBD metro markets was predominately negative over the quarter, as face rents continue to remain flat in contrast to the increase of prime incentives. As a result, net effective rents have remained flat or negative.

Outlook: Vacancy expected to decrease over the near-term as supply is limited

The Sydney CBD vacancy rate is forecast to continue trending downwards over the near term as we enter a low supply period. Centralisation activity is expected to continue as organisations seek out higher quality office accommodation to attract and/or retain talent.

The Sydney metro markets’ development pipeline continues to lessen, as elevated vacancy rates and uplift in construction costs have pushed projects out into later years or developers have resubmitted for alternative use on these sites.