Melbourne CBD Office Figures Q2 2025

key Points: 

• Net absorption in Melbourne’s CBD turned positive for the first time since 2022, with 1,446sqm of demand recorded over the past six months. Activity was strongest in core precincts, aligning with prevailing local sentiment observed in recent years. 
• No major office completions were recorded in Q2 2025. The forecasted annual supply has been further deferred, with only 25,000 sqm of new stock expected between 2027 and 2029, representing a historic low for the Melbourne market.
• The overall vacancy rate in the Melbourne CBD ended H1 2025 at 17.94%, reflecting a modest decline of 4 basis points over the period. While vacancy pressures have stabilised, a substantial volume of incoming supply over the next 12 months suggests this stabilisation may be temporary.
• Prime net face rents increased by 1.5% over Q2 2025. Prime effective rents experienced moderate growth, supported by stabilising incentives across most precincts. 
• Prime CBD Office Yields have declined for the first since H2 2022.