Just 38 per cent of offices in Melbourne CBD were occupied in July, according to the latest Office Occupancy Survey by the Property Council of Australia, marking a significant drop on the 49 per cent occupancy rate recorded in June.
Some of the worst days in July saw just 19 per cent of offices being used, the survey has shown.
Office occupancy rates also declined in Sydney, Brisbane and Adelaide in July, but every other major Australian city still sits above 50 per cent occupancy.
Offices in Sydney CBD were 52 per cent full in July, while 53 per cent of offices in Brisbane were occupied, and 64 per cent were in Adelaide.
Melbourne City Council has been working to try to attract workers back to CBD offices since COVID-19 lockdowns got people into the habit of working from home.
However, Adina Cirson from the Property Council has explained that a “perfect storm” of factors – the recent spike in COVID-19 and influenza cases, the updated advice from Government around work-from-home settings and the chilly Melbourne winter – has led to people staying home.
“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,” Cirson said.
“More than 30 per cent of respondents to the survey indicated that health and safety concerns were an influence on occupancy, which is the highest number since the survey began in 2020.
“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.”
Cirson has said the survey should serve as a “wake-up call” to leaders about the need for work to get people back into the CBD.
“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.
“With an end to winter in sight and updated health advice that the peak of our latest COVID event has passed earlier than expected, it’s critical that government and the business community come together to find urgent solutions to ensure winter hibernation doesn’t extend into spring .”
The owner of Journal café on Flinders Lane, Johnny, told Today that business was the quietest he had ever seen in his 25 years working in the area.
“Previous to COVID this place would have been half-full by now,” he said.
“Now only a few dribs and drabs. It makes life hard at the moment.
Johnny said the council and the government needed to work to get back people into the city, and stop advising people to work from home.
“We need people coming in here for these shops to be filled and to make the city great again.”
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