Coworking is increasing in popularity across Australia, with office fitouts in Canberra and across the country being made to appeal to the market. With all of the coworking spaces opening up in the country, the costs of renting desks have dropped across the board.
The average cost of hiring a desk in a coworking space dropped in all major cities in Australia, save for Canberra, where the cost went up by 40% in 2017-18 FY, according to a report on coworking published by Office Hub, a flexible workspace agency.
Meanwhile, prices in Sydney went down more than 5% to $677, while Melbourne saw rates dropping by 10% on average down to $558.
In the prior financial year, coworking listing on Office Hub surged upwards by 25%, up to 4885 suites or desks from 3908, thanks to new startups and private businesses renting out their office fitouts in Canberra and across the country.
More than 3% of Aussie businesses moved to flexible office space in that time frame, but, surprisingly, there was a 19% increase in coworking providers operating in the country.
According to Office Hub Founder and CEO Grant Philipp, competition in the coworking market was getting stiff as tenants now have better options thanks to the increased supply of desks and workspaces. He explains that the coworking market is now for tenants, thanks to the fact that owners of spaces need to compete with others for pricing and quality, as tenants will ignore them otherwise.
While Sydney and Melbourne have been the main cities in the Australian coworking space, and had their prices adjust accordingly, other cities have been ramping in competition, as pricing indicates. While Sydney and Melbourne only saw rates drop by 5.45%, and 10.15%, respectively, other cities have seen bigger drops, like Brisbane and, especially, Hobart, which saw desk rates drop by 24.39%, and 28.80%, respectively.
Mr. Philipp explains that there’s a lot of scope for providers in Australia’s high-demand markets, which is why a lot of providers are migrating to the country. By contrast, Canberra is not as popular due to the fact that capital’s offices have a lot of government offices, which demand complete privacy and confidentiality.