2025 Price Guide for Flexible Office Spaces in Sydney

Median Flex Desk Rate in Sydney Climbs 1.2%

Sydney’s flexible office market remained resilient in 2024, with 10,555 desks available for rent, reflecting steady demand despite economic headwinds. A report from Rubberdesk indicates that Sydney’s flexible office market experienced a slight reduction in vacancy rates, decreasing from 2,543 in Q1 2023 to 2,259 in Q3 2024, signaling healthy absorption.


Meanwhile, Savills' 2024 report highlighted that the city experienced mixed trends across various flex office sizes. Smaller suites (under 15 desks) remained in high demand, leading to tightened supply and increased prices. Median desk rates rose 7% in 2024, with prices averaging A$1,000 per desk, while premium locations commanded up to A$1,300 per desk.

Statista (2023) states that the market displayed stability amid inflationary pressures. Average monthly desk prices stood at A$980 in Q2 2023. Despite cautious business sentiment,     Rubberdesk noted that supply increased slightly by 1.9%, and median desk prices rose marginally by 0.6% to A$650 per desk in Q1 2023. By Q3 2024, the median office cost increased to A$667, up 1.2% quarter-on-quarter, suggesting stabilisation.

This highlights the market’s balancing act: while demand for smaller, flexible spaces remains strong, the need for larger spaces is shifting toward traditional leases. Flexible spaces designed with wellness, sustainability, and collaboration are expected to drive future demand, especially as hybrid work models gain popularity.

 

Sydney’s Coworking Desk Rates Drop to A$620

Sydney remains at the forefront of Australia’s coworking market, with desk prices showing a downward trend due to evolving demand and stabilising supply. From an average monthly rent of A$680 per desk in 2024, the cost fell to A$620 in 2025.

The available desk capacity in 2025 stands at 5,070, indicating that while demand remains strong, supply is keeping pace. This balance has contributed to a more stable pricing environment despite ongoing economic fluctuations.

The resilience of Sydney’s coworking market is evident in its ability to provide cost-effective alternatives to traditional leases. Sydney’s status as a leading business hub guarantees that flexible office spaces will continue serving diverse companies, from startups to multinational corporations.
 

Key Factors Influencing the Drop in Sydney’s Coworking Desk Rates

Sydney’s coworking market has experienced a price adjustment in 2025, with the average monthly desk rates falling to A$620. This change reflects a combination of stable supply, evolving demand trends, and heightened competition among coworking providers. Below are the key factors contributing to this shift.

1. Market Stabilisation & Balanced Supply
The available capacity of 5,070 desks in 2025 suggests that supply has matched demand, preventing price surges and fostering a more stable pricing environment.

2. Increased Competition Among Providers
As more coworking operators enter the market, pricing has become increasingly competitive. Businesses now enjoy a broader selection of office spaces, which exerts downward pressure on desk rates.

3. Shift in Demand Due to Hybrid Work Models
Many companies have reduced their office requirements, relying on a combination of remote and in-office work. This has decreased the demand for daily coworking desks, resulting in slight price adjustments.

4. Preference for Private & Serviced Offices
Some businesses are moving towards serviced office spaces and long-term leases, resulting in decreased demand for hot desks and open-plan coworking setups. This trend has led to lower desk prices.

5. Suburban & Alternative Locations Gaining Popularity
Areas outside the Sydney CBD, including Parramatta, Chatswood, and Macquarie Park, are providing more affordable alternatives to city-based coworking spaces. This has compelled some urban operators to reduce prices in order to remain competitive.

Coworking Desk Rates According to Location

Sydney’s coworking market is shaped by several key business hubs, each offering unique advantages in terms of accessibility, pricing, and business environment. The areas selected are Sydney CBD, North Sydney, Parramatta, Chatswood, Macquarie Park, Surry Hills, and Paddington. These areas represent a mix of premium, mid-tier, and budget-friendly coworking locations that cater to various business needs.

These locations have been chosen based on their growing commercial importance, availability of flexible office spaces, and demand from businesses ranging from startups to multinational corporations.

Data on coworking desk rates in these locations is extracted from Office Hub Co-stats for Q1, 2025. The graph showcases how coworking desk rates fluctuate across these areas, helping companies understand the cost dynamics when choosing a workspace.

 

Serviced Desk Rates in Sydney Reach $900 Per Month

Sydney’s serviced desk rates have steadily increased, reflecting the rising demand for premium flexible office spaces. As shown in the graph, in 2024, the average cost of a serviced desk was $750 per desk per month, rising to $900 per desk per month in 2025—a 20% year-on-year increase.

 

Key Factors Driving Changes in Serviced Desk Rates in Sydney

Several market dynamics influence the increase in serviced desk rates:

1. Supply Constraints in Prime Locations
The limited availability of serviced office spaces, particularly in the Sydney CBD and other high-demand areas, has contributed to higher rental costs.

2. Hybrid Work Model Adoption
While hybrid work models have reduced overall office space requirements, many companies still need dedicated, professional environments for meetings and collaboration, sustaining demand for serviced desks.

3. Increased Operational Costs
Rising utility bills, property maintenance costs, and inflation have led operators to adjust pricing to maintain profitability.

4. Improved Service Offerings
Many serviced office providers have enhanced their packages by including high-speed internet, premium meeting rooms, concierge services, and advanced IT support, justifying higher price points.

5. Market Competitiveness & Differentiation
Operators are differentiating their offerings with luxury workspaces, wellness facilities, and networking opportunities, leading to price segmentation across different serviced office providers.

Serviced Office Desk Rates According to Location

Data on serviced office desk rates in key business districts of Sydney is sourced from Office Hub Co-Stats for Q1 2025. The graph illustrates how rates vary across different areas, assisting companies in analysing cost dynamics when selecting a workspace.

 

• Sydney CBD remains the costliest serviced office location, while North Sydney and Macquarie Park are the most affordable alternatives.
• Larger office spaces (30 or more desks) have lower costs per desk, making bulk leasing more cost-effective for growing companies.
• Emerging business districts such as Parramatta and Chatswood provide a balance of affordability and accessibility, making them appealing to businesses looking to expand.
• Trendy areas such as Surry Hills and Paddington cater to niche industries, leading to price variations.

Virtual Office Rate in Sydney Increases to $260

Sydney's virtual office market has evolved significantly, reflecting the growing demand for cost-effective business addresses and professional services. In 2025, the average cost of a virtual office in Sydney will be $260 per month, a substantial increase from $102 per desk per month in 2017.

This growing trend highlights the rising demand for virtual offices among startups, remote workers, and international companies looking for a prestigious Sydney business address without the expenses associated with a physical office.

The demand for virtual offices has surged due to the increase in remote work, cost-conscious business operations, and companies seeking to expand their market presence without committing to physical office space. Consequently, premium locations within Sydney command higher virtual office fees, especially in areas with strong corporate infrastructure and business credibility.

The steady increase in virtual office rates reflects the shift toward flexible workspace solutions. As more businesses choose virtual setups, providers improve their service offerings—such as mail handling, call answering, and access to meeting rooms—further driving up costs. Despite these increases, virtual offices remain a cost-effective alternative for businesses seeking to establish a professional presence in Sydney.

 

Factors Influencing Virtual Office Rate Changes

Several key factors have influenced the steady rise in virtual office rates over the years.

1. Increased Demand for Flexible Work Solutions
As businesses embrace remote and hybrid work models, the demand for virtual office services, including business addresses and mail handling, has surged.

2. Premium Location Appeal 
Virtual offices in prime areas like Sydney CBD command higher prices due to their prestigious business addresses.

3. Inflation and Operational Costs
Rising rental and administrative costs have contributed to the gradual price increase of virtual office packages.

4. Enhanced Service Offerings
Many providers now offer additional features, such as call handling, meeting room access, and coworking space benefits, contributing to the overall cost.

5. Supply and Market Competition
As more businesses adopt virtual offices, competitive pricing among providers helps to moderate price increases.

Virtual Office Rates According to Location

Sydney’s virtual office market is growing as businesses look for flexible workspace solutions. Virtual offices offer a prestigious business address without the need for a physical office commitment.

The selected locations are determined by their commercial importance, connectivity, and the demand for virtual office services from diverse businesses, including startups, remote teams, and global companies establishing a local presence.

Data on virtual office rates in these areas is extracted from Office Hub Co-stats for Q1 2025. The graph shown here demonstrates how virtual office rates vary based on location and lease duration, assisting businesses in making informed decisions.

 

• Due to high corporate demand, Sydney CBD and North Sydney remain the most expensive locations.
• Macquarie Park & Chatswood provide the most affordable virtual office solutions.
• Larger virtual office packages (30+ desks) offer better value, reducing per-desk costs for businesses scaling operations.
• Demand-driven pricing variations highlight the role of business concentration, accessibility, and market preferences in shaping virtual office rates.
• This market shift underscores the growing importance of flexible office solutions. Businesses prioritise strategic locations that enhance their professional image while keeping costs manageable.

Sydney’s Desk Rates Remain Highest in Australia

Sydney continues to be the most expensive city for office space in Australia, with desk rates remaining higher than in other major business hubs. According to Savills News, Sydney has recorded a 57.7% increase in live/work costs per employee per year since 2008—one of the highest among 12 global cities and significantly outpacing London's 38.7% increase.

Despite this steep rise, Sydney remains more affordable than leading global cities. With an annual cost of US$63,630 per employee, it is a relatively economical choice for international businesses compared to cities like New York, Hong Kong, and London.

According to Simon Hemphill, Head of Savills Research NSW, Sydney’s real estate markets have shown resilience, continuing to grow even as other Western markets have experienced declines. Over the next five years, high-rise commercial properties in central Sydney are projected to perform the best, driven by:

• Low office vacancy rates, sustaining demand for prime locations.
• Historically low interest rates have made commercial investments attractive.
• A strong residential market fuels investor confidence.

This sustained demand, combined with Sydney’s global appeal and strong economic fundamentals, ensures that desk rates will remain at the higher end of the spectrum, reinforcing the city’s status as Australia’s premier business destination.

Are Flexible Offices Cheaper Than Traditional Offices?

The rising demand for flexible office spaces has prompted businesses to reassess their real estate costs. Compared to traditional office leases, flexible workspaces offer cost savings, reduced long-term commitments, and scalable options, making them an attractive choice for companies of all sizes.

Flexible offices typically operate on short-term leases and all-inclusive pricing models, covering utilities, maintenance, and amenities. In contrast, traditional offices require long-term commitments and additional expenses for fit-outs, security, and facility management.

According to the data:

• Serviced office desk rates in Sydney have risen to $900 monthly in 2025, reflecting increased demand for premium, fully managed office solutions.
• However, coworking spaces have become more affordable, with average desk rates dropping to $620 per month, thanks to stabilised supply and competition.
• Virtual offices offer the most budget-friendly solution, with rates starting at $260 per month. They allow businesses to establish a professional presence at a fraction of the cost.

Key Takeaways

• Cost Efficiency: Flexible offices provide lower upfront costs and eliminate capital expenditures required for traditional leases.
• Scalability: Companies can adjust their workspace to accommodate business needs without incurring financial penalties.
• Market Shift: With businesses prioritising agility, flexible workspaces have gained a 30% market share in Sydney’s office landscape.

While premium serviced offices remain expensive, coworking spaces and virtual offices continue to offer affordable alternatives for businesses looking to cut costs without sacrificing flexibility.