Australia

Analysts believe there are positive signs for the year.

Sydney and Melbourne, in particular.

A total of 22,500sqm of new retail space entered the market in Q3.

Space rationalisation is likely to continue.

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.

These projects will yield over 111,00sqm of new stock.

It was a deal worth AUD420 million.

Vacancy rates have remained stable amidst a muted sales environment.

Thanks to a project under construction at 15 Sydney Avenue.

Completions have underperformed for six consecutive quarters.

Thanks to six new hotels currently under construction.

Vacancy rates in Outer West Sydney, West Melbourne, and South Brisbane are rising.

The city recorded negative demand of -1,346sqm during the quarter.

Absorption hit 53,600sqm in Q3.

And there are 12 major projects under construction.

Transactions underperformed the 10-year average of AUD255.4m.