Office occupancy lifts in September

Thursday 13 September 2022

The number of workers going into the office lifted in most CBDs in September according to the latest Property Council of Australia's latest Office Occupancy Survey.

Brisbane enjoyed the largest rise, with occupancy jumping from 57 to 70 per cent, while Adelaide saw occupancy increase from 71 to 78 per cent and occupancy in Perth lifted from 69 to 76 per cent.

Occupancy rose in Melbourne from 39 to 41 per cent while occupancy rates in Sydney remained steady at 52 per cent. In Canberra occupancy dropped from 64 to 54 per cent.

The survey found that office occupancy rates continued to vary strongly between peak and low days. Peak occupancy days in Perth reached 84 per cent, but on a low day it fell to 68 per cent while in Melbourne it was 25 per cent.

Property Council Chief Executive Ken Morrison said it was pleasing to see occupancy rates rise significantly in a number of cities.

"We expected to see office occupancy lift after the winter Omicron wave subsided and that's what we have witnessed in most capital cities around Australia," Mr Morrison said.

"It's especially encouraging to see office occupancy jump significantly in several major CBDs, but the results are a lot lower in Melbourne and Sydney which has more lockdown disruption through the pandemic.

"Our survey shows people are returning to their offices strongly on peak days, with peak day occupancy reaching 84 per cent in Perth, 83 per cent in Adelaide, 79 per cent in Brisbane, Sydney at 65 per cent and 60 per cent in Canberra and Melbourne.

"Melbourne's peak occupancy day increased by 9 per cent from the previous month, which is a positive sign despite the overall occupancy rate remaining subdued.

"With warmer weather now upon us and the Omicron wave subsiding significantly, it bodes well for continued momentum in the months ahead," he said.

The latest Office Occupancy Survey found the preference for greater flexibility including working from home was the major driver of occupancy levels, increasing from 64 to 83 per cent.

Health concerns' influence on the data has continued to wane, falling from 30 per cent in July to 4 per cent in September.

The survey was conducted in the field between 26 and 30 September 2022.

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