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Home Press

Demand For Coworking Spaces Continues To Rise In Sydney

by Allwork.Space - Press
June 17, 2019
in Press
Reading Time: 4 mins read
A A
Press Release

A recent report by Instant Offices found that Sydney and Melbourne are two of the largest global markets for coworking and flexible workspaces in the world

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Despite the mature nature of the Australian market, demand continues to rise as companies of all sizes swap the constraints of traditional offices for flexible workspace. According to findings by Instant Offices, Sydney and Melbourne are two of the largest global markets for coworking and serviced offices in the world.

As one of the top 10 biggest markets in the APAC region and the second biggest in Australia, Sydney shows signs of strong growth and continued demand as corporate companies begin to adopt the flexible working trend. According to the 2018 APAC Flex Market Report, there was a 90% increase in demand for flexible workstations by companies looking for 25+ desks or more in 2017. Scale-ups are also increasingly looking for flexible space to lower risks and increase agility.

Alongside cities like Hong Kong, Tokyo, Singapore, Melbourne and Jakarta, Sydney has seen consistent growth over the last five years, ranking it in the top 10 APAC cities with the largest flexible workspace markets. In Asia-Pacific, the supply for new centres has increased by 16% in the last year, with forecasted growth for Sydney at a strong 13%, on par with Hong Kong and the fast-growing flexible workspace market in Kuala Lumpur.

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In Australia, many SMEs have already adopted some form of flexible working. A strong work-life balance sees a large percentage of the workforce either occasionally working from home or remotely from multiple locations around the country. Research by Indeed shows 68% of Australian companies encourage remote work, with 67% saying it increases productivity, 57% agreeing it reduces absenteeism and 51% enjoying the reduction in operational costs.

Average Desk Cost Overall – A$725

Area Average Desk Cost
Sydney CBD A$800-850
Pyrmont A$600-650
Barangaroo A$950
Parramatta A$500
North Sydney A$650-700
Surry Hills A$750-800

Growth of Flexible Office Space in 12 Months

Area % Growth
Sydney CBD 24%
North Sydney 22%
Surry Hills 6%
Parramatta 14%
Barangaroo 20%

 

Serviced Coworking Hybrid
7% 18% 28%

The supply of coworking spaces in Sydney has increased by 18% in twelve months, while hybrid space, a combination of serviced offices and coworking space, has seen strong growth at 28%.

In a survey across the APAC region, Instant asked what facilities and services maximise value and experience in a flexible working space. Compared to 74% of Europeans who value exercise space, nearly 40% of those in the APAC region see it as adding no value or even detracting from an office environment. Instead, 79% of APAC respondents value designated relaxation space in their offices, while 65% agree that health services add value.

According to Startup Genome, Sydney is ranked among the top start-up ecosystems in the world and is home to Australia’s largest tech start-up hub. As a strategic business location between Australia and South East Asia, the city is an attractive option for international companies and entrepreneurs looking for a large talent pool, excellent infrastructure and a supportive environment for high-growth businesses.

Demand for space in the city’s key districts shows no signs of slowing, and as competition grows, businesses of all sizes will benefit from the agility and affordability of flexible office space in Sydney.

https://www.instantoffices.com/blog/featured/cost-per-desk-sydney

About The Instant Group: Flexible Workspace Specialists

Founded in 1999, The Instant Group is a workspace innovation company that rethinks workspace on behalf of its clients injecting flexibility, reducing cost and driving enterprise performance. Instant places more than 7,000 companies a year in flexible workspace such as serviced, managed or coworking offices including Sky, Network Rail, Capita, Serco, Teleperformance, Worldpay is making it the market leader in flexible workspace.

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