Australia’s office vacancies have reached a five-year high on weak tenant demand and rising supply, the Property Council of Australia has said.

Office vacancies rose to 9.3% in the six months to the end of January, from 8.3% in the previous half, the highest since January 2005, the organisation, which represents owners, investors and managers of commercial property, wrote in a report today. Vacancies will rise 1.5% to 2% in the next 12 months, said David Rees, head of research at Jones Lang Lasalle.