Source: McDougall, B. 1992. "Rooms at the top". The Daily Telegraph Mirror, March 9: 10 & 11.
One of the biggest impacts of the 1990-1991 economic recession in Sydney was the increase in vacant space in city office buildings.
In 1992, the recession had finished but was still making its presence felt. Unemployment in Australia would peak at 11.2 % of the labour force by the end of that year.
Also, building projects that were conceived during the boom years of the Australian economy during the 1980s were still under construction as developers hoped that strong economic times would continue and that businesses would lease space in office buildings in central Sydney and the suburbs. In early 1992, thre were 14 office buildings that were identified by The Daily Telegraph Mirror as under construction including Chifley Tower, Governor Phillip Tower and Governor Macquarie Tower.
At the time, office vacancy rates in central Sydney ranged around 15%, but Chatswood was recording a vacancy rate of 30%. Around half a million square meters of office space was dormant.
There were some projects that did not go ahead e.g. 2 Park Street, Angel Place, Village Cinema Centre redevelopment. World Square was a major victim. A dispute between the developer, construction workers and unions saw the project grind to a halt in 1990 as it had raised concerns over the economic vialability of the project. Even in the early 1990s there was optimism that construction would recommence but built in stages over an extended period of time
Vacancy rates in central Sydney is currently at 13.7%, reflecting the reduced demand for office space associated with the appeal of work from home arrangements for workers which has seen a reduction in demand for office space. This is up from 5% in the period prior to COVID.
