Market statistics
Insight
Melbourne Office Market Dynamics Q2 2025
- Headline vacancy decreased in the CBD over the quarter as the market recorded robust net absorption. The Fringe market recorded an increase in vacancy as tenants centralised into the CBD, while the S.E.S market headline vacancy figure remained unchanged.
- The Melbourne CBD recorded one project reaching completion over Q2 2025. The Fringe market also noted a supply addition over the quarter, while no projects were recorded as completing in the S.E.S. Supply in the CBD remains strong, with substantial additions expected over the near term; the metropolitan market pipeline appears to be moderating, with steady completions forecast.
- Prime yields remained stable in the CBD over Q2 2025 as market sentiment continues to improve following the rebound in demand indicators over the first half of 2025. The Fringe market recorded decompression, driven by transactional evidence indicating soft yields, while the S.E.S market stabilised.