In a kiss of death for many CBD retailers, working from home is here to stay according to the federal government’s key economic adviser, with a new report suggesting some people might even take a pay cut to remain in their home office.
The percentage of Australians working from home has jumped from 8 per cent to 40 per cent in the past two years. The most recent lockdowns have turned the Melbourne and Sydney CBD’s back to ghost towns, with all but essential retailers closed until further notice.
A major review by the Productivity Commission found the percentage of Australians working from home had jumped from 8 per cent to about 40 per cent over the past two years, staying high even when previous lockdowns ended.
Commission chair Michael Brennan said this would remain the new normal even after the COVID-19 crisis was over.
“I think it’s likely that working from home will continue at higher levels than we saw before the pandemic, maybe not so much at the levels we’ve seen at the height of lockdown, but somewhere in between,” he said.
The main advantage, according to people surveyed, was saving time and money on their daily commute.
In 2019, full-time workers in Australia’s major cities spent an average of 67 minutes each day commuting, and for those taking public transport, the average time value and transport cost totalled $57 a day.
A CBRE report covering the first six months of the year to June 30, showed Sydney had an office vacancy rate of 8.3 per cent and climbing, up from 3.7 per cent from June 2019. Brisbane is at 12.7 per cent, followed by Melbourne at 12.8 per cent and rising and Adelaide is at 13.3 per cent.