DWINDLING SUPPLY WILL DRIVE PREMIUM CBD RENTS
Sydney faces a shortage of new premium office developments, with Knight Frank research forecasting rental growth of 5% per year as demand outstrips supply.
< 1 min
Sydney’s CBD is heading into a period of historically low new office supply, with just three major premium developments over 25,000 square metres due by 2029, according to new Knight Frank research.
Of the 163,000 square metres set to be delivered, 65 per cent is already pre-committed, leaving only one per cent of total CBD stock available for lease until 2027. No new projects are currently slated for 2028-29.
Knight Frank Associate Director, Research & Consulting, Marco Mascitelli, said premium-grade space continued to outperform the wider market.
“Since 2018 there has been an average pre-practical completion commitment rate of 87% across all new developments, which have totalled 481,000 across 13 schemes,” Mascitelli said.
“Over the past 18 months, 170,000 square metres of newly developed premium grade office space has been delivered…all have been successfully leased, achieving an average commitment rate of 90%.”
National Head of Leasing Andrea Roberts said the market was tightening rapidly.
“Tenants continue to prioritise centrally located assets with market-leading amenity, and in time this will expose a supply shortfall at the top end of market which will drive rapid rental growth,” she said.
“As a result of the looming supply shortfall, occupiers seeking premium space within the 2026 to 2028 window need to act swiftly to secure their preferred option.”
Knight Frank forecasts average rental growth of around five per cent a year for Sydney’s premium assets, with incentive levels expected to fall below those offered across the wider market.
Studio apartments have almost disappeared from new Australian developments. Lura is bringing them back to Burleigh Heads from $495,000.
Porsche’s Cayenne Turbo Electric produces up to 1,156PS and reaches 100km/h in a claimed 2.5 seconds.
Bjorn Farrugia was named for Björn Borg, the ice-cool Swede who once ruled Wimbledon’s Centre Court, and for a long stretch of his young life the name felt like a mandate
3 min
A tennis scholarship took him to America two decades ago with no return ticket in mind. Today the Melbourne-born, Beverly Hills-based agent is one of the most decorated names in Los Angeles luxury real estate — and still calls himself an Australian first.
By improving sluggish performance or replacing a broken screen, you can make your old iPhone feel new agai
From Italian vegetable-tanned leather to real-world training insight, Australian brand PK9 Gear is redefining what luxury means for discerning dog owners.
