The property council wants the Victorian government to do more to return workers to the CBD. Photo: ANDREW KACIMAIWAI
Melbourne’s CBD office vacancy remains the highest in the country, according to new data from the Property Council of Australia.
The council’s latest biannual Office Market Report shows Melbourne’s CBD office vacancy is stable at 18 per cent above the national average by several percentage points.
In the six months to January 2025, the Victorian capital’s CBD recorded its highest fall in demand since 2022 (the highest in any capital CBD nationwide).
That fall was matched by a 1 per cent decrease in office space due to refurbishments or conversions, the report states.
The data also reveals Melbourne’s sub-lease vacancy rates remain above the historical average, currently at 1.6 per cent, a level that surpasses every Australian city.
Property Council Victorian Executive Director Cath Evans said Melbourne’s consistent reduction in office demand highlights the need for government action on encouraging workers to return to office.
“The Victorian Government has a responsibility to show more active leadership, ensuring Victorian public servants work in the office more often and support a vibrant CBD,” she says.
“If we want to remain one of the best cities to visit in the world, we must champion a thriving CBD that supports the businesses that help make our city great.
“The thousands of small businesses that call our CBD home are struggling without the regular foot traffic of office workers to support them.
“The government must deliver on its ‘Open Doors’ policy as part of last year’s economic growth statement to ensure that business activity within the CBD is incentivised.
“Smaller CBD businesses deserve to be provided a conducive environment to revitalise economic activity in Melbourne.
“We are seeing a global trend among governments to support working in the office, and we encourage the Victorian Government to adopt a similar push.
“The government, in partnership with the industry, still has a significant body of work ahead to tackle key strategic challenges facing our CBD.”
