Australia Co-working Office Spaces Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 6.50 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Australia Co-working Office Spaces Market Analysis
The size of Australia co-working office spaces market is USD 1.3 billion in the current year and is anticipated to register a CAGR of over 6.5% during the forecast period. Co-working spaces provide numerous advantages, including cost-effectiveness, adaptability, and networking possibilities. In every major city in the globe, including Australia, there are co-working spaces.
- The COVID-19 pandemic had accelerated the growth of co-working spaces in the country, as traditional workspaces faced challenges during the crisis. Many enterprises moved toward co-working spaces because of the affordable prices and flexibility in working space. Also, the co-working spaces ensure to provide a safe working environment.
- In Australia, there will be at least 374 coworking spaces by the end of the current year. Although a hot desk costs about USD 299 on average around the world, it looks more expensive in Australia, where it may cost up to USD 409 each month. In 2022, Sydney will be the focal location for the sector in the country, with more than 205 co-working spaces, followed by Melbourne with 138 available spaces and Perth and Adelaide with 16 and 15 public co-working spaces, respectively.
- Furthermore, the sector is driven by the increasing demand from freelancers, small- and medium-scale enterprises (SMEs), and startups. The sector provides top facilities at affordable prices, and large-scale enterprises were also adopting co-working spaces after realizing the benefits offered by the sector. Also, the increasing number of startups with a high rate of investment flows resulted in the sector's robust growth.
Australia Co-working Office Spaces Market Trends
This section covers the major market trends shaping the Australia Co-working Office Spaces Market according to our research experts:
Co-working Spaces are Experiencing Significant Growth
The co-working office spaces have been significantly growing over the years. In addition, Sydney and Melbourne led this sector by offering many co-working spaces in the previous year. Meanwhile, Sydney remained a major location in the country, with most of the businesses moving to co-working and shared offices. It was followed by Melbourne, the second-largest co-working market in Australia, with shared offices attracting a wide range of tenants, including major corporates, government organizations, and startups.
Most freelancers, startups, and small- and medium-scale enterprises (SMEs) are adopting co-working spaces because they provide top features and facilities such as fast internet services, 24/7 access to office space, meeting rooms, and furnished and unfurnished spaces, etc.
Furthermore, serviced offices (including creative and classic) contributed most of the share in the co-working office space sector. In Q1 2022, Canberra, Brisbane, and Adelaide were leading in the supply of serviced office spaces.
Sydney is Witnessing Growth in the Sector
Sydney is the major location for the development of co-working spaces in the country. The market in Sydney is experiencing significant growth as many enterprises are moving toward co-working spaces to meet social distancing requirements, reduce space, and save costs.
Furthermore, to meet the rising demand in the sector, major players in the country were expanding their footprint in Sydney. For instance, major players like JustCo and WOTSO witnessed a sharp increase in their business expansions, with more than 20,000 square meters of office space added, to leverage the advantages of flexible space-as-a-service and decentralization. Despite these large-scale operations, independent co-working brands such as Workit Spaces and Work Club have developed growing co-work communities in Sydney.
Moreover, Sydney operates more than 205 co-working office spaces in the country, followed by Melbourne and Perth. In 2022, the average co-working floor space size offered in the city is more than 2,250 square meters, the available desks are approximately 8300, and more than 45% of co-working spaces are in A-grade buildings, followed by 40% presence in B-grade buildings. In addition, the average monthly price per desk in Sydney is in the range of AUD 908 (USD 609) in 2022.
Australia Co-working Office Spaces Industry Overview
The Australian co-working office spaces market is fragmented, with both global and local players existing in the market. Some of the key players in the market include Hub Australia, JustCo, WeWork Management LLC, Spaces, and WOTSO Limited. Also, many more are entering the need to fulfill the rapid demand for casual environment offices. The Australian co-working office spaces market companies are involved in several growth and expansion strategies, such as strategic partnerships, mergers, and acquisitions, to gain a competitive advantage.
Australia Co-working Office Spaces Market Leaders
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WOTSO Limited
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Hub Australia
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JustCo
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Spaces
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WeWork Management LLC
*Disclaimer: Major Players sorted in no particular order
Australia Co-working Office Spaces Market News
October 2022 - Hub Australia and Generator, the top domestic flexible workspace providers in Australia and New Zealand, respectively, have teamed up to create one of the largest international coworking options in the area. All 13 of Hub Australia's premium sites and all 5 of Generator's premium sites will be made available to their respective membership bases combined roughly 8,000 members for free, as part of an innovative experimental project.
February 2022 - WeWork (one of the leading providers of flexible shared workspaces for technology startups and services for other enterprises) expanded its strategic partnership with ARHT Media Inc. (the global leader in the development, production, and distribution of high-quality, low-latency hologram, and digital content). In the first phase of the partnership, ARHT Media's technology will be available across a total of 30 WeWork locations around the world. Furthermore, this technology will be implemented throughout the United States, Europe, Asia, Australia, and Canada.
Australia Co-working Office Spaces Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Analysis Methodology
- 2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
- 4.1 Current Market Scenario
- 4.2 Technological Trends
- 4.3 Industry Value Chain Analysis
- 4.4 Government Regulations and Initiatives
- 4.5 Insights into Co-working Startups in Australia
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4.6 Market Dynamics
- 4.6.1 Market Drivers
- 4.6.2 Market Restraints
- 4.6.3 Market Opportunities
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4.7 Porter's Five Forces Analysis
- 4.7.1 Threat of New Entrants
- 4.7.2 Bargaining Power of Buyers/Consumers
- 4.7.3 Bargaining Power of Suppliers
- 4.7.4 Threat of Substitute Products
- 4.7.5 Intensity of Competitive Rivalry
- 4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Type
- 5.1.1 Flexible Managed Office
- 5.1.2 Serviced Office
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5.2 By Application
- 5.2.1 Information Technology (IT and ITES)
- 5.2.2 Legal Services
- 5.2.3 BFSI (Banking, Financial Services, and Insurance)
- 5.2.4 Consulting
- 5.2.5 Other Services
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5.3 By End User
- 5.3.1 Personal User
- 5.3.2 Small-scale Company
- 5.3.3 Large-scale Company
- 5.3.4 Other End Users
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5.4 By Key Cities
- 5.4.1 Sydney
- 5.4.2 Melbourne
- 5.4.3 Perth
6. COMPETITIVE LANDSCAPE
- 6.1 Overview (Market Concentration Analysis and Major Players)
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6.2 Company Profiles
- 6.2.1 WOTSO Limited
- 6.2.2 The Commons
- 6.2.3 The Office Space
- 6.2.4 WeWork Management LLC
- 6.2.5 Hub Australia
- 6.2.6 The Circle
- 6.2.7 JustCo
- 6.2.8 Workit Spaces
- 6.2.9 Work Club Global
- 6.2.10 Spaces
- 6.2.11 Switch
- 6.2.12 Coworking South Australia
- 6.2.13 workspace365 Pty Ltd
- 6.2.14 CreativeCubes.Co Pty Ltd*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
** Subject To AvailablityAustralia Co-working Office Spaces Industry Segmentation
Co-working is an arrangement in which workers of different companies share an office space, allowing cost savings and convenience using common infrastructures. The Australian co-working office spaces market is segmented by type (flexible managed office and serviced office), by application (information technology [IT and ITES], legal services, BFSI [banking, financial services, and insurance], consulting, and other services), by end user (personal user, small-scale company, large-scale company, and other end users), and by key cities (Sydney, Melbourne, and Perth). The report offers market size and forecasts for the Australia co-working office spaces market in value (USD billion) for all the above segments.
| By Type | Flexible Managed Office |
| Serviced Office | |
| By Application | Information Technology (IT and ITES) |
| Legal Services | |
| BFSI (Banking, Financial Services, and Insurance) | |
| Consulting | |
| Other Services | |
| By End User | Personal User |
| Small-scale Company | |
| Large-scale Company | |
| Other End Users | |
| By Key Cities | Sydney |
| Melbourne | |
| Perth |
Australia Co-working Office Spaces Market Research FAQs
What is the current Australia Co-working Office Spaces Market size?
The Australia Co-working Office Spaces Market is projected to register a CAGR of greater than 6.5% during the forecast period (2024-2029)
Who are the key players in Australia Co-working Office Spaces Market?
WOTSO Limited, Hub Australia, JustCo, Spaces and WeWork Management LLC are the major companies operating in the Australia Co-working Office Spaces Market.
What years does this Australia Co-working Office Spaces Market cover?
The report covers the Australia Co-working Office Spaces Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Australia Co-working Office Spaces Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Australia Shared Office Space Industry Report
Statistics for the 2023 Australia Shared Office Space market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Australia Shared Office Space analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
