Why office vacancy rates have spiked to a 30-year high
Aussies looking to work from home have pushed office vacancy rates in major cities to a 30-year high, new data shows.
Moderated by Tomas Kauer 
Aussies opting to work from home have pushed office vacancy rates in major cities to a 30-year high, new data shows.
As the number of Australians working from home remains at around 30 per cent, it means more office buildings in major cities are remaining empty, with vacancy rates in CBDs rising to 14.3 per cent in the first six months of 2025.
The vacancy rate is at its highest rate since 1995, when the country was still recovering from the property market crash of the 1990s.
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This includes a rise of almost 1 per cent for office spaces in Sydney due to high levels of supply outstripping demand, according to data from The Property Council of Australia.
There were also vacancy rises in Brisbane, Canberra and Perth, but the vacancy rate in Melbourne's CBD fell slightly.
However, Melbourne still has the highest vacancy rate of office spaces in the country, currently at 17.9 per cent.
Whilst working from home remains a big factor, businesses seeking more high-end office space has also influenced the change.
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"The continuous supply of new high-quality office space in our CBDs is a response to businesses searching out great places for their employees to work in," CEO of the Property Council Mark Zorbas said.
"Tenants are capitalising on opportunities to occupy premium buildings in prime CBD locations, with premium space continuing to see higher demand levels than lower-grade buildings."
The high supply has also been influenced by a large amount of office spaces being built in the early part of the decade.
Up to 2.6 million square metres of office space has been developed in the last five years, and 200,000 sqm of supply has been added in the last six months alone.
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