Canberra’s CBD needs more than just public sector offices, says the property council report. Photo: DFAT
Canberra has one of the tightest capital city office markets in the country but the CBD is in need of a makeover to bring workers and customers back.
The finding was contained in the Property Council of Australia January 2025 biannual Office Market Report.
Council’s ACT & Capital Region Executive Director Ashlee Berry says that tenant demand in the federal capital is steady but long-term demand needs to match its strong supply.
“These results reinforce the need for a co-ordinated approach to maintain vibrancy in the city centre while maximising opportunities for new tenants,” she says.
“Canberra is one of the best-performing capital city markets but we need to make sure demand continues to grow in line with the city’s future office supply.”
While the public sector anchors much of the city’s commercial real estate demand, Berry says that the central business district (CBD) needs more diverse business.
Social media posts have also been critical of the lack of activity.
She says the property industry must keep working with the Territory government and businesses to boost economic activity in the CBD.
“The supply side of the equation is well addressed with high-quality developments in the pipeline. Now we need to focus on making sure Canberra remains a place where people want to work, live and do business,” she says.
“This means investing in the CBD — supporting events, cultural activities and infrastructure that attract workers and enhance the appeal of the city centre.”
The council insights into the Canberra market are:
- The vacancy rate fell from 9.5 per cent to 9.2 per cent as 20,419 sq m more space was leased than vacated.
- Future supply is strong, with significant projects in the pipeline
- The office vacancy remains well below the national average of 14.7 per cent, reflecting its status as a stable and desirable market.
