• Roy Morgan’s Monthly Business Confidence Index grew by 3.1% m-o-m in September 2021, driven by the announcement of the re-opening plans by the New South Wales and Victorian governments. Improving vaccination rates will continue to facilitate an uplift in business confidence. The labour market has largely held up throughout the lockdown periods, in contrast to previous lockdowns in 2020. Improved labour demand is expected in Victoria as the state emerges from lockdown and progressively opens in Q4.

 

  • Leasing enquiry levels in Sydney remains robust, with total briefs at a record level and enquiry volumes at their highest level since 2017.

 

  • Improving office fundamentals saw marginal increases incentives, suggesting most markets are either already at peak or reaching their peak, though tightening in incentives are unlikely over the near term.

 

  • Sales volumes as of Q3 2021 were $4.46 billion across 31 transactions, up 113% compared to Q3 2020, highlighting continued investor demand for Australian office

 

  • Prime and secondary yields remained stable.