Australia Co-Working Office Spaces Market Report and Forecast 2025-2034

Australia Co-Working Office Spaces Market Outlook

The Australia co-working office spaces market size is projected to grow at a CAGR of 5.05% between 2025 and 2034.

Key Takeaways

• According to Australian Banking Association, the Australian business landscape is dominated by small and medium-sized enterprises (SMEs), out of 2.6 million businesses, 98% of the businesses fall under the SME classification.

• New South Wales (NSW) possess the highest concentration of SMEs in Australia, accounting for 33% of the national total. This distribution majorly follows the population distribution across states.

• In terms of industry breakdown, construction leads the pack with 17% of all small businesses, followed closely by professional, scientific, and technical services (13%) and rental, hiring, and real estate services (11%).

The rise of flexible work among startups, and small and medium-sized enterprises (SMEs) in Australia is expected to drive the Australia co-working office space market growth

The Australia co-working space market has exhibited significant growth in recent years. Major cities, particularly Sydney and Melbourne, have been at the forefront of this trend, with a high concentration of coworking spaces established in 2022. Notably, Sydney continues to be a leading location within the country, attracting a growing number of businesses seeking flexible and collaborative office solutions.

In Australia, the growing popularity of coworking spaces among freelancers, startups, and small and medium-sized enterprises (SMEs) can be attributed to the comprehensive suite of amenities and features they offer.  These typically include high-speed internet access, flexible access hours with 24/7 availability in some cases, meeting rooms for collaboration, and a variety of furnished or unfurnished workspace options. According to Australian Banking Association, micro businesses witnessed a 10% increase from June 2021 (1.41 million) to June 2022 (1.55 million). This follows an exceptional growth period during the 2021 financial year, with a 15% surge from 812,734 to 931,791. While the growth rate for small businesses slowed slightly to 3% (reaching 955,861 in June 2022 from 931,791 in June 2021).

In November 2023, The Great Room by Industrious announced its upcoming Sydney launch in early 2024. Catering to diverse business needs, The Great Room will offer a comprehensive range of flexible membership plans. This includes dedicated office space suitable for teams of 3 to 30, hot desk options ideal for freelancers, startups, and small teams, day passes for short-term workspace and amenity access, and virtual office services providing businesses with a prestigious corporate address.

Market Segmentation

Australia Co-Working Office Spaces Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments

Market Breakup by Type

• Flexible Managed Office

• Serviced Office

Market Breakup by Application

• Information Technology (IT and ITES)

• Real Estate

• BFSI

• Consulting

• Others

Market Breakup by End Use

• Freelancers

• Large Size Enterprises

• Small and Medium Enterprises

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Australian Capital Territory

• Western Australia

• Others

The Australia co-working office spaces market key players are BlackWall Funds Pty Ltd. (WOTSO), The Commons Cowork Holding Pty Ltd., The Office Space, WeWork Companies LLC, Hub Australia Pty Ltd., JustCo Group, Bader Investments Pty Ltd. (Workit Spaces), and CreativeCubes.Co Pty Ltd., among others.

Key Highlights of the Report