--- title: "Melbourne vs Sydney: Class A office comparison" description: "Side-by-side Class A office comparison for Melbourne and Sydney — rent, vacancy, talent, tax, lease norms, transit, and top submarkets." canonical: https://classa.info/compare/melbourne-vs-sydney pageType: comparison lastUpdated: 2026-04-15T00:00:00.000Z license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)." --- > Melbourne ($43/sqft, 18.4% vacancy) and Sydney ($89/sqft, 12.6% vacancy) compete on different axes: Melbourne on rent and tax and Sydney on talent depth. ## TL;DR - Class A rent: Melbourne $43/sqft vs Sydney $89/sqft. - Vacancy: Melbourne 18.4% vs Sydney 12.6%. - Talent index: Melbourne 84 vs Sydney 85. - Corporate tax: Melbourne 30% vs Sydney 30%. - Premium flex/seat/month: Melbourne $720 vs Sydney $990. # Melbourne vs Sydney: Class A office comparison **Melbourne ($43/sqft, 18.4% vacancy) and Sydney ($89/sqft, 12.6% vacancy) compete on different axes: Melbourne on rent and tax and Sydney on talent depth.** ## TL;DR - [Class A](/glossary/class-a) rent: Melbourne $43/sqft vs Sydney $89/sqft. - Vacancy: Melbourne 18.4% vs Sydney 12.6%. - Talent index: Melbourne 84 vs Sydney 85. - Corporate tax: Melbourne 30% vs Sydney 30%. - [Premium flex](/topics/lease-vs-flex)/seat/month: Melbourne $720 vs Sydney $990. ## Market data side-by-side | Metric | Melbourne | Sydney| | Region | APAC | APAC| | Country | Australia | Australia| | Class A rent (USD/sqft/yr) | $43 | $89| | Class A rent (local) | 720 AUD | 1480 AUD| | Vacancy | 18.4% | 12.6%| | Trend | softening | flat| | Prime yield | 5.4% | 5.5%| | Premium flex / seat / month (USD) | $720 | $990| | Submarkets covered | 5 | 6| | Corporate tax | 30% | 30%| ## Lease norms | Metric | Melbourne | Sydney| | Typical term | 7 yrs | 7 yrs| | Typical rent-free | 14 mos | 30 mos| | Lease norms | Net leases. 7-10 year terms standard. Incentives of 30-45% (combination of free rent, fitout, and rent abatement) typical on a 10-year Class A deal. | Standard 5-10 year lease. Gross or net structure (both common). Australian leases distinguish 'face rent' (headline) from 'effective rent' (face minus incentive). Incentives of 30-40% are now standard — typically structured as rent abatement, fit-out">fit-out contribution, or both.| | Tax note | 30% Australian corporate tax (25% for base rate entities). Victorian state payroll tax of 4.85-6.85%. R&D tax incentive available federally. | Federal corporate tax 30%. NSW payroll tax applies. No state corporate income tax.| ## Talent | Metric | Melbourne | Sydney| | Talent index (0–100) | 84 | 85| | Talent note | Deep professional services, banking, education, and creative talent. Strong feed from University of Melbourne, Monash, and RMIT. English-fluent professional base; multicultural workforce. | Australia's deepest financial-services, technology, and professional-services talent pool. Average all-in compensation indexes 85.| ## Transit & commute **Melbourne:** Metro Trains (suburban rail), Yarra Trams (the world's largest tram network), and bus. Melbourne Metro Tunnel opens 2025 — adds five new stations under the CBD. **Sydney:** Sydney Metro and Sydney Trains converge at Wynyard, Town Hall, and Central. The new Sydney Metro City & Southwest line transformed core CBD commute capacity. ## Top submarkets — Melbourne - [**CBD East (Collins Street)**](/cities/melbourne/cbd-east) — trophy tier · A$880/sqm/yr · ≈ $53.1 PSF/yr USD - [**CBD West (Spencer Street)**](/cities/melbourne/cbd-west-spencer) — trophy tier · A$800/sqm/yr · ≈ $48.3 PSF/yr USD - [**Southbank**](/cities/melbourne/southbank) — prime tier · A$750/sqm/yr · ≈ $45.3 PSF/yr USD ## Top submarkets — Sydney - [**Circular Quay & Bridge**](/cities/sydney/circular-quay-bridge) — trophy tier · A$1,620/sqm/yr · ≈ $97.8 PSF/yr USD - [**Core CBD**](/cities/sydney/core-cbd) — trophy tier · A$1,500/sqm/yr · ≈ $90.6 PSF/yr USD - [**Barangaroo**](/cities/sydney/barangaroo) — trophy tier · A$1,450/sqm/yr · ≈ $87.6 PSF/yr USD ## Decision criteria ### Pick by cost Melbourne is the cheaper Class A market on a USD basis. ### Pick by talent depth Sydney has the deeper talent index (85/100 vs 84/100). ### Pick by tax Tax data not available for comparison. ### Pick by lease optionality Melbourne typical term is 7 years with 14 months free; Sydney runs 7 years with 30 months free. ### Pick by transit Melbourne: Metro Trains (suburban rail), Yarra Trams (the world's largest tram network), and bus. Melbourne Metro Tunnel opens 2025 — adds five new stations under the CBD. Sydney: Sydney Metro and Sydney Trains converge at Wynyard, Town Hall, and Central. The new Sydney Metro City & Southwest line transformed core CBD commute capacity. ## Run a 4-city comparison Score Melbourne, Sydney and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD. [**Run a 4-city comparison →**](/tools/city-comparator) ## Frequently asked questions ****Is Class A office cheaper in Melbourne or Sydney?**** : Melbourne is cheaper on a USD basis: $43/sqft vs $89/sqft. ****Which has better talent depth, Melbourne or Sydney?**** : Sydney indexes higher on talent depth (85 vs 84). ****Which has more sublease availability, Melbourne or Sydney?**** : Melbourne carries higher vacancy (18.4% vs 12.6%) and therefore typically more sublease overhang. ****What lease term should I expect in Melbourne vs Sydney?**** : Melbourne typical term is 7 years with 14 months rent-free; Sydney typical term is 7 years with 30 months rent-free. ****How does transit and commuter access compare?**** : Melbourne: Metro Trains (suburban rail), Yarra Trams (the world's largest tram network), and bus. Melbourne Metro Tunnel opens 2025 — adds five new stations under the CBD. Sydney: Sydney Metro and Sydney Trains converge at Wynyard, Town Hall, and Central. The new Sydney Metro City & Southwest line transformed core CBD commute capacity. ## Editorial provenance Reviewed by [**Kenji Watanabe**](/about/authors/kenji-watanabe) — APAC contributing editor. Last updated 2026-04-15. See our [methodology](/about/methodology) and [editorial standards](/about/editorial-standards). ### Primary sources for this page - [CBRE Marketview reports](https://www.cbre.com/insights) — CBRE - [JLL Office Insight](https://www.jll.com/en/trends-and-insights) — JLL - [Cushman & Wakefield Marketbeat](https://www.cushmanwakefield.com/en/insights) — Cushman & Wakefield - [Savills World Research](https://www.savills.com/research_articles/) — Savills - [Colliers Global Office Outlook](https://www.colliers.com/en/research) — Colliers [Full sources index](/about/sources) · [Submit a correction](/about/corrections) --- Citation: Source: Class A Atlas (https://classa.info/compare/melbourne-vs-sydney), updated 2026-04-15T00:00:00.000Z.