Australia CBD Office Figures Q2 2026

Key Points: 

• The labour market remains tight with an unemployment rate of just 4.4%. 
• Net absorption was approximately 30,000 sqm in H1 2026 across Australian CBD’s. A strong result across most markets outside of Canberra.
• National CBD vacancy rose from 14.8% to 14.9% over the past 6 months.
• Australian CBD prime effective rents climbed 1.8% q-o-q and 7.2% y-o-y in Q2 2026. Face rents continue to do the majority of the heavy lifting, rising by 1.2% q-o-q and 5.6% y-o-y.
• Transaction activity in Q2 2026 reached $2.0 billion, a decline on Q1 figures. However, year-to-date volumes are 40% higher than the same period in 2025.
• Prime yields were mostly stable across Australian CBD markets in Q2 2026. Despite the increase in debt costs over the course of this year, rental growth is typically outperforming expectations which is justifying stable yields.