Why Melbourne is behind other capital cities

OSTN Staff

Damning new figures from the Property Council of Australia — obtained exclusively by the Herald Sun — shows the city’s rebuild has taken a hit, with office occupancy levels in July well less than half of the pre-Covid baseline at just 38 per cent.It’s an 11-point drop from the 49 per cent average that was enjoyed in June. While the survey shows every other major city recorded a winter slump, they all still managed to record an average occupancy rate of more than 50 per cent.Sydney’s onsite office worker population contributed to an occupancy rate of 53 per cent in July, which rose to 67 per cent on some days.Perth is leading the country having achieved an average office occupancy level of 71 per cent of pre-pandemic levels, followed by 64 per cent in Adelaide and 61 per cent in Canberra.Brisbane peaked at 68 per cent occupancy while Adelaide and Perth both got to 78 per cent of pre-Covid levels at times.At its peak in July, Melbourne managed to fill just 53 per cent of desks in office buildings, a number which at its lowest point had plummeted to a concerning 19 per cent.It has prompted calls for the Andrews government – who has encouraged people to work at home – to do more to get public servants back to their desks now that chief health officer Brett Sutton had indicated Victoria was passed its latest Covid peak.Property Council’s acting Victorian executive director Adina Cirson said the government needed to team up with the business community to find “urgent solutions to ensure winter hibernation doesn’t extend into spring”.“It’s clear from these figures that government advice about working from home, especially internal policies for public service colleagues, has seriously dampened any momentum for a broader return to the office,” she said.“These numbers should serve as a wake-up call to our policy-makers and business leaders that we can’t take our foot off the pedal when it comes to CBD recovery and that a new round of bold messaging is needed, as soon as health advice allows, to actively promote the CBD and attract workers back to the office again.“While Melbourne has enjoyed steady growth in office occupancy numbers over the first half of the year, it’s clear that there are serious challenges facing us in terms of encouraging workers back into the city.”More than 30 per cent of respondents to the survey indicated that health and safety concerns were an influence on occupancy.David Southwick, the opposition’s spokesman for small business and the recovery of the CBD, said the state government should “lead by example” to ensure public servants are working onsite.“Hybrid working may be here to stay but it’s clear Daniel Andrews’ three-day-a-week target for public servants isn’t close to being met,” he said.“Melbourne will never be the world’s most liveable city once again with only one in five people showing up throughout the week.” A state government spokeswoman said employers had been asked to consider work-from-home arrangements most suitable for their workplace and employees. “Since the pandemic began, we’ve supported businesses and the community to make it through while reducing transmission of Covid-19,” she said. “More than $13bn has been given to over 270,000 businesses across the state, and we’re also backing the CBD with the return of events through the state’s joint $200m Melbourne City Revitalisation Fund with City of Melbourne.”

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