CBD office occupancy rose in March, hitting a peak of 61 % in Adelaide, the highest level recorded among Australian capital cities.
Major capitals see sharp increases
Melbourne, Sydney and Canberra all more than doubled their office fill rates during the month, according to the Property Council of Australia (PCA) survey.
In Melbourne, the rate climbed from 15 % in February to 32 % in March. Sydney moved from 18 % to 41 %, while Canberra rose from 21 % to 45 %.
Modest gains and a lone decline
Brisbane’s presence rose from 41 % to 48 %, and Adelaide’s increased from 47 % to 61 %. The upward trend was less dramatic than in the larger markets.
Perth, however, recorded a decline, slipping from 55 % to 45 %. The drop coincided with a surge in Omicron cases, marking the lowest level since July 2020.
“It’s heartening that people are returning to the office in such numbers, particularly given considerable weather events on the east coast and the continuing isolation impacts of the pandemic,” Ken Morrison, PCA chief executive, said.
He added, “To see office fill rates double in some of our major CBDs is especially pleasing and bodes well for further recovery in the months ahead.”
The shift suggests employees are beginning to value face‑to‑face interaction again, even as many firms keep flexible policies. Workers may find daily commutes more tolerable if they can still enjoy occasional remote days, balancing productivity with personal time.
On a peak day in Adelaide, the rate reached 72 %, but on a low day it fell to 49 %. Those fluctuations illustrate how daily demand can vary widely.
When asked when a major improvement would occur, 32 % of respondents expected it within one to two months, while a larger share, 56 %, foresaw it taking more than three months.
The survey identified a preference for greater flexibility as the primary driver, cited by 42 % of participants.
“As forecasted, office fill rates accelerated in March as more businesses reopened after the school holidays,” Morrison noted. “We hope to see this trend continue as the Property Council works with business and all levels of government to bring back vibrancy into our CBDs.”
