Property Council data shows Melbourne’s workers heading back to offices

Property Council chief executive Ken Morrison said the strong jump in Melbourne was a very positive sign of recovery for the city. Picture: Jason Edwards

The laggard Victorian capital is at last seeing workers return to offices, despite a year-end surge in Covid-19 cases.

Melbourne’s office occupancy jumped last month by 12 per cent to 57 per cent, marking the highest level since the pandemic struck.

The city is still catching up to rivals in terms of office attendance, with Sydney at 59 per cent, its highest level since mid-2021. Other capitals are still running much more strongly, particularly Perth where occupancy smashed the 80 per cent barrier in November.

The latest data from the Property Council showed occupancy lifted in Brisbane from 64 to 67 per cent and Adelaide remains strong at 74 per cent.

But public service heavy Canberra dipped from 57 to 52 per cent to record the lowest occupancy levels in the country.

Property Council chief executive Ken Morrison said the strong jump in Melbourne was a very positive sign of recovery for the city.

“The Melbourne momentum has begun, with the biggest jump in office occupancy of any city in the country and a new post-pandemic high,” Mr Morrison said.

Property Council chief executive Ken Morrison. Picture: AAP

Midweek peak office occupancy days in Melbourne are actually the third highest in the country, at 75 per cent, but its low days are the second lowest in the country at 39 per cent, as the week tails off.

Mr Morrison said Perth’s result showed that the actions of political leaders can influence the vibrancy of their CBDs.

“With its nation-leading 80 per cent occupancy rate, Perth is setting the bar for the rest of the country,” Mr Morrison said.

Perth dodged the severe lockdowns that crunched other cities, and Western Australia premier Mark McGowan insisted that public servants needed to remain connected to their workplaces, urging public servants to work from their offices rather than home.

“Public sector leadership is important and there are definite lessons to be drawn from Perth’s success for other cities, including Canberra, which went backwards last month,” Mr Morrison said.

Mr Morrison said it was pleasing to see strong occupancy in Sydney, Brisbane and Adelaide during November.

Occupancy on peak days reached 88 per cent in Perth, 77 per cent in Adelaide and 75 per cent in Melbourne, with Sydney peaks at 74 per cent, Brisbane at 73 per cent and Canberra at 67 per cent.

Landlords are now banking on a fuller return to the offices next year.