Since lockdowns eased in late 2021, commercial property owners and investors have remained proactive in the market as it continues to recover. As major businesses across Melbourne welcome their employees back to the office, the demand for commercial properties is soaring with both national and international investors vying for the best possible office space for their staff.
Through the last two years, remote work orders have caused commercial property demand to plummet as employees began to adapt to their new conditions. While the demand for residential property was still high throughout 2020 and 2021 in Melbourne, growth in commercial real estate was mostly underwhelming. Looking at the early quarter of 2022, businesses are making their way back to their traditional work spaces causing a in demand for modified offices to facilitate hybrid arrangements.
A cursory analysis of the Central Business Districts of Australia indicate that larger corporate businesses are already looking for new, refurbished and bigger commercial buildings across the capital cities. While some large scale businesses are focused on acquiring plentiful office spaces, others are likely to look for reduced office spaces. This is because many SMEs have experienced a significant drop in their workforce- a significant reduction compared to pre-pandemic times. With the new hybrid arrangements and the subsequent reduction in daily employees present, it is reasonable to opt for reduced working space.
As the government no longer advises businesses to work from home, the surge in demand for office space is likely to spur proportionate changes in property prices. With limited supply and increasing demand for existing spaces, the commercial property market in Melbourne could see a hike in the value of one of its biggest commodities. As a general economic rule, when demand exceeds supply, prices are bound to rise.
Given how quickly demand and the subsequent prices can change, seeking out a commercial property expert is essential in finding the right long-term solution. AXIS Property are well-versed in the Melbourne market and can help you find the most appropriate office space in a prime location. Not only are these parameters vital to ensure the longevity of your operations but the current moment demands, more than ever, an attractive workplace for prospective employees as employers are still grappling with the sliding doors of their respective industries.
Given the trajectory of Australia’s vaccine rollout and the easing of restrictions, a return to normality is imminent. Invariably, this will lead to a sharp rise in demand for quality commercial property as well the expertise to help filter the search. For most of 2022, commercial property prices are likely to increase until a market correction upsets the increasing prices, which experts believe will happen in 2023.
If you are looking for traditional or communal office space for your business in Melbourne, Axis Property can help you. As they combine comprehensive expertise with a personalised service, they are primed to help find you the most suitable listing for the new business environment.