Australian CBD Office Figures Q2 2025

Key Points: 

• The labour market in Australia weakened in Jun-25, with unemployment rising to 4.2%. This remains very tight but is the first indication of some softening in hiring.
• Australian CBD’s recorded 63,738 sqm of net absorption in H1 2025, a further improvement from 2024. Adelaide CBD and Brisbane CBD were the key outperformers.
• Overall CBD vacancy increased slightly from 13.7% to 14.3% in H1 2025, as supply outstripped demand.
• Australian CBD prime effective rents climbed 1.2% q-o-q and 5.1% y-o-y in Q2 2025.
• Transaction activity in Q2 2025 slowed to $1.6 billion, down 9% on the previous quarter. Volumes are down on last year partly due to less activity in the Sydney CBD.
• Prime yields were relatively stable in Q2 2025 across most Australian CBD markets.