Cushman and Wakefield

Around 28,700 units were launched, 3.4x higher than 2023 totals.

The city is expected to add 85,000sqm of new supply annually from 2026 onwards.

But warehouse rents remained stable.

There will be 24,500sqm of new office supply in 2025 alone.

This represents a 10% year-on-year increase.

The new spaces will come from 17 new retail projects.

Over 2,700 new units were launched during the quarter.

Office demand is expected to average 75 million square feet per annum.

That is compared to absorption levels between 2020 and 2024.

This is due to an influx of new supply.

New supply won’t rise again until 2028.

Nearly 25,000sqm of new supply will enter the market in 2025 alone.

Positive absorption is expected to persist in the near term.

Supply will be 50% higher than the 10-year average.

And vacancy is expected to decline.

The market will have time to absorb the existing supply.According to data from Cushman and Wakefield, in 2024, the Sydney market saw an addition of 176,000 sqm of new office space, primarily from the completion of the North Tower and South Tower at Metro Martin, which are largely pre-committed.