Australia

Rents are also expected to see downward pressure as vacancy rises.

Flexible hub and spoke workplaces are emerging as a sought-after option as businesses assess their options in a post COVID-19 environment.

Flex space drove 109,000sqm or 31% of net absorption in Australian office markets over 2018-19.

There were 12 sales amounting to AUD464 million, which is the highest single quarter total since 4Q18.

The COVID shock was most apparent in April as occupancy dropped to 21.8%.

Sydney recorded a total of 476,300 sqm of gross take-up in 2Q20, more than six times higher than the 1Q20 total and more than twice the 10-year quarterly average.

Savills reveals that Australia is closely following UK's decade-long Build-To Rent growth spurt. Accelerated by the emergence of COVID-19, new ways of living and working throughout Australia are emerging and growing in popularity, at a time when people are increasingly becoming isolated and craving connection.