With theJanuary 2021 Office Market Report revealing Canberra to be the only mainland CBD market to not record an increase in vacancy over the six months to January 2021, holding steady at 10.1%, it comes as no surprise the majority of surveyed industry experts believe Canberra will be the hottest market in the coming 12-months.
Canberra’s strong Government tenant base – particularly in the wake of a call for the public sector to return to offices, and consequent long leases and steady yields, was reported as the primary reason behind experts believing Canberra to be the market most well-placed to ride out the downtown resultant from the pandemic.
Most surveyed experts believe Canberra's future supply will drive demand. It is forecast that vacancy rates will increase, and incentives and yields are projected to remain unchanged over the next 12 months until mid-2022.
Although industry experts do expect changes to the office market following the fallout of the pandemic, the steady changes to rents, rental growth, incentives, and yields are more than can be said for the other Australian capital cities still anticipating recovery.