Gold Coast’s office vacancy saw the highest level of demand in over three years, resulting in a long-awaited and much welcomed drop in vacancies, new research shows.

According to the Property Council of Australia’s mid-year Office Market Report, while vacancy rates in the coastal region remained the highest in the country at 22.4 per cent, a decrease of 1.6 percentage points had been recorded in the six months to July, with particularly significant demand for A Grade office accommodation.

The A Grade segment recorded its highest take-up in seven years, with vacancies falling by 9.1 percentage points to 25.3 per cent over the six months to July.

Across the region there was a total net absorption of 6,587sqm, up from the 2,549sqm recorded over the previous six months.

Broadbeach and Robina were the strongest performers, with vacancies falling by 5.1 and 5.7 percentage points, respectively.

“It is important to note that the improvement in the market’s overall performance was assisted by a 1,166sqm withdrawal in office space during the period,” Property Council of Australia Queensland Executive Director Kathy Mac Dermott said.

“An additional 5,746sqm of space is due to come on the market in 2012, with a further 3,000sqm of projects mooted.

“While the Gold Coast office market has a long road to recovery, a number of key initiatives and projects will provide valuable momentum to the sector.

“The $949m Rapid Transit light rail infrastructure is a catalytic project which will stimulate all sectors of the property market.

“The City’s bid for the 2018 Commonwealth Games provides excellent branding opportunities for the Gold Coast and will trigger a major wave of development and investment which will help revitalise the region.

“These initiatives, along with Queensland Treasury’s projected 5 per cent growth forecast for the State in 2011-12, will underpin the Gold Coast office market’s gradual recovery in coming years.