‘We need to continue to focus more on improving amenities in the city’: Property Council

OFFICE vacancy rates in Darwin continue their alarming climb, a Property Council of Australia audit has found

Shoppers walk past empty storefronts in Darwin's Smith Street Mall. Picture: Che Chorley

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OFFICE vacancy rates in Darwin continue their alarming climb, jumping from 16.8 per cent to 19.7 per cent over the past 12 months, a Property Council of Australia audit has found.

The Property Council Northern Territory executive director Ruth Palmer put the increase down to significant supply additions at a time when there was negative demand.

Ms Palmer pointed to the new Manunda Place building in Cavanagh Street as an example of significant supply addition.

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“Government leases are around 80 per cent of the tenancies in the Darwin CBD, so when you move government workers into another building, which we have seen with Manunda Place, it leaves quite a big hole to be filled,” she said.

“There is around 5000sq m in the old Health House in Mitchell Street that now sits completely vacant.

Property Council NT executive director Ruth Palmer Picture: SUPPLIED

“We are seeing pockets being filled up in better quality buildings, leaving the C grade buildings at a concerning 56.4 per cent vacancy.

“We already knew that there was to be approximately 12,000sq m of space to come online from the end of 2020 onwards. The movement of Northern Territory government health employees into Manunda Place has left a gap in office space.

“We need to continue to focus more on improving amenities in the city that aim to bolster construction, retail, hospitality, tourism, and the ever-growing number of residents that call the city centre their home.”

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Ms Palmer said taxes and levies such as the vacant derelict site tax did not encourage investment.

“They definitely will not improve the performance of the CBD,” she said.

“We believe it will further deteriorate the market. Keeping the Cities Deal moving is also a major priority in activating vacant spaces.”