Data from the Property Council of Australia shows that the average occupancy rate for office buildings in the Melbourne CBD was just 45% of pre-pandemic levels in October.
In contrast, the average occupancy rate in the Sydney CBD was 58% of pre-Covid levels. Perth and Adelaide continue to lead the way, with CBD offices at 78% and 76%, respectively, while Brisbane is sitting at 64%.
The Property Council’s Victorian executive director Cath Evans says that while many people are returning to the CBD’s retail and dining precincts, both sides of politics need to do more to encourage office staff to resume working in the CBD. Evans adds that the Victorian economy and the tax collected by the government to pay for election promises are heavily dependent on the health of the CBD.
“For the major political parties, the fact that our data indicates that most businesses don’t foresee an improvement in occupancy levels anytime within the next three months should be a cause for alarm”.
“Our state’s economy, and consequently the tax collected by our governments to pay for their election promises, is heavily dependent on the health of Melbourne’s CBD.”
The Productivity Commission’s 5-year Productivity Inquiry, released in July, lauded that remote work has ushered a “massive productivity boost” via accelerating the adoption of digital technologies. Therefore, why should policy makers actively fight against these gains merely to support the financial interests of the property lobby?
Surveys repeatedly show that Australian employees want to keep working remotely in some capacity. This relates to the time and cost savings from not having to commute into work, as well as the flexibility remote work provides.
The argument that workers need to return to CBD offices in order to support CBD businesses and tax revenue is also myopic.
While these CBD businesses have certainly been disadvantaged by remote work, suburban businesses closer to people’s homes are benefiting as economic activity is redirected there. Therefore, remote work presents a transfer of economic activity, not lost activity.
As usual the Property Council is talking its own book. The welfare of both workers and suburban businesses must be taken into account by policy makers.
