Offices in Melbourne’s CBD are more empty than in any other capital city, new data has revealed, as Melbourne’s cafes and restaurants continue to suffer from a lack of foot traffic.
Just 38 per cent of offices in Melbourne’s CBD were occupied in July, according to the Property Council of Australia’s latest office occupancy survey, marking a significant drop from the occupancy rate of 49 percent registered in June.
According to the survey, some of the worst days in July saw only 19% of offices being used.
Empty Melbourne CBD under lockdown. (the age)
Office occupancy rates also declined in Sydney, Brisbane and Adelaide in July, but all other major Australian cities are still above 50 percent occupancy.
Sydney CBD offices were 52% full in July, while Brisbane offices were 53% occupied and Adelaide 64%.
The City of Melbourne has been working to try to attract workers back to offices in the CBD since the COVID-19 lockdowns meant people tend to work from home.
However, the Property Council’s Adina Cirson explained that a “perfect storm” of factors – the recent rise in cases of COVID-19 and flu, updated government advice on working from home environments and the cold Melbourne’s winter – has caused people to stay at home.
“While Melbourne has enjoyed steady growth in the number of offices in the first half of the year, it is clear that we face serious challenges in terms of encouraging workers to return to the city,” he said Cirson.
“More than 30 percent of survey respondents indicated that health and safety issues influenced employment, which is the highest number since the survey began in 2020.
“It is clear from these figures that the government’s advice on working from home, particularly internal policies for public service colleagues, has seriously slowed any push for a wider return to the office.”
Offices are mostly empty in Melbourne’s CBD. (Getty)
Cirson said the survey should serve as a “wake-up call” to leaders about the need to work to bring people back to the CBD.
“We cannot take our foot off the pedal when it comes to the recovery of CBD and that a new round of bold messaging is needed, as soon as health boards allow, to actively promote CBD and get workers back into the office .
“With the end of winter in sight and updated health advice that the peak of our latest COVID event has passed earlier than expected, it is critical that government and the business community come together to find urgent solutions to ensure that winter hibernation does not extend into spring.”
Journal cafe owner Johnny has said work needs to be done to revitalize Melbourne’s CBD. (new)
The owner of the Journal cafe on Flinders Lane, Johnny, told Today business was the quietest he had seen it in his 25 years working in the area.
“Now, before COVID, this place would have been half full,” he said.
“Just a few dribs and drabs now. It’s making life difficult at the moment.
Johnny said the council and government needed to work to bring people back into the city and stop advising people to work from home.
“We need people to come here so these stores will fill up and make the city great again.”
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