Australian CBD Office Figures Q3 2025

Key Points:

• The labour market remains tight with unemployment at just 4.2% in August 2025, while jobs growth has eased slightly in recent months. 
• The average effective rent for prime Australian CBD office rose by 2.3% q-o-q and 4.8% y-o-y. The national average effective rent of $624/sqm, is now above the previous peak in December 2019. 
• Supply over the next five years across Australian CBD’s will be the lowest since late 90’s.
• Transaction activity in Q3 2025 reached $2.1 billion, up 42% compared to the previous quarter. However, national volumes YTD remain around 20% below the same period in 2024.
• Australian CBD average prime yields tightened by 3 bps in Q3 2025 to average 6.68%. This is the first indication of tightening cap rates since early 2022 for the Australian office market.