Australia Coworking Space Market Overview, 2030

The coworking space market in Australia has undergone significant transformation over the past decade, evolving from a niche offering primarily serving freelancers and startups to a mainstream real estate solution embraced by large enterprises, remote teams, and government-linked innovators. Initially concentrated in Sydney and Melbourne, the market has rapidly expanded into secondary cities like Brisbane, Perth, Adelaide, and even regional hubs, fueled by the rise of hybrid work models and a growing preference for decentralized office solutions. Australia’s strong startup ecosystem, combined with cultural openness to flexible work, has fostered a fertile ground for coworking operators to flourish. Global players such as WeWork and IWG (Spaces and Regus) have established a strong presence, but local brands like Hub Australia, The Commons, and WOTSO have gained momentum by offering tailored, design-forward, and community-centric spaces. These homegrown operators often integrate sustainability, local art, and wellness features, aligning with Australian values around work-life balance and environmental responsibility. The COVID-19 pandemic significantly accelerated the demand for flexible leases, satellite workspaces, and touchless technology leading operators to upgrade their digital infrastructure and health protocols. Post-pandemic, enterprises are increasingly using coworking spaces to support agile team distribution, reduce real estate costs, and enhance employee satisfaction. Government support for startups and innovation hubs has further bolstered demand. Today, coworking in Australia is not just a real estate alternative but a strategic enabler of innovation, collaboration, and corporate agility. The sector continues to evolve with trends like suburban expansion, green certified buildings, and integration of technology such as access control, AI-based booking systems, and virtual office services.

According to the research report ""Australia Coworking Market Overview, 2030,"" published by Bonafide Research, the Australia coworking market is anticipated to grow at more than 13.47% CAGR from 2025 to 2030. The coworking space market in Australia faces several challenges and risk factors. High commercial property costs in major cities like Sydney and Melbourne can strain profitability, especially for smaller operators. Market saturation in urban centers increases competition and limits pricing flexibility. Economic uncertainty and fluctuating demand from hybrid work models can impact occupancy rates. Additionally, regulatory compliance related to zoning, workplace safety, and accessibility adds operational complexity. Data privacy concerns, particularly for tech-enabled spaces using digital access or surveillance systems, require strict adherence to Australian privacy laws. Sustaining consistent service quality across multiple locations remains a hurdle for scaling operators. Australia’s coworking space market offers strong opportunities for new entrants, particularly in underserved suburban and regional areas where demand is growing due to hybrid work trends. Entrepreneurs can tap into niches like industry specific coworking e.g., for creatives, health professionals, or tech startups or wellness-focused workspaces. There's also rising interest in eco-conscious and tech enabled spaces, where offerings like energy efficient infrastructure, smart access, and contactless services can provide differentiation. Government incentives for innovation hubs and small businesses further support market entry. Partnerships with local councils, universities, or incubators can accelerate credibility and growth, especially for operators prioritizing community engagement and localized services.

In Australia, coworking space formats have evolved to cater to the changing dynamics of urban work environments and regional decentralization trends. Open coworking spaces remain widely used in cities like Sydney, Melbourne, and Brisbane due to their affordability, social appeal, and flexibility for freelancers and mobile professionals. These spaces emphasize collaboration and are often located in startup-heavy precincts such as Sydney’s Tech Central and Melbourne’s Cremorne. Private offices have gained substantial traction, especially post-pandemic, as SMEs and corporates seek secured, enclosed areas within shared environments. These spaces are in high demand in areas like North Sydney and Southbank, where hybrid work models are dominant. Virtual offices have seen a distinct rise in popularity in regions such as Perth and Adelaide, especially among consultants and small-scale service providers, driven by the country’s high broadband penetration and growing remote-first business setups. Event spaces and meeting rooms are increasingly important features, integrated into coworking hubs to serve client-facing businesses and networking-driven sectors like legal services, marketing, and IT. Operators such as Hub Australia and The Commons offer premium event facilities that double as innovation forums, providing differentiation in competitive urban coworking markets. A unique characteristic in Australia is the use of coworking spaces in mixed-use developments and regional areas to decentralize employment opportunities, particularly in Queensland and Tasmania.

Freelancers and individuals form a significant portion of the coworking space clientele in Australia, especially in creative industries, digital media, and tech consulting. Areas such as Fitzroy in Melbourne and Surry Hills in Sydney host a high density of creative freelancers utilizing open desks and hot-desking solutions. Startups and SMEs are driving growth in suburban coworking hubs across Western Sydney, Sunshine Coast, and regional Victoria. These users favor cost-effective shared office plans with access to business support services. Large enterprises such as ANZ, PwC, and Telstra have adopted coworking spaces in central business districts (CBDs) to support flexible work programs and project-based teams. These companies often lease private suites within coworking spaces or operate satellite innovation labs in coworking environments. Remote work has significantly expanded coworking usage outside city cores, with demand rising in places like Byron Bay, Newcastle, and Geelong. Workers living in these regions prefer coworking spaces that reduce commute times while maintaining professional infrastructure. In Australia, remote workspaces also cater to digital nomads and expats, which is supported by the country’s strong infrastructure and work-life balance culture. Unlike in many countries, coworking spaces in regional areas are promoted by local councils as part of broader regional development strategies, emphasizing inclusivity and sustainability.

The coworking space market in Australia operates under a diverse mix of business models shaped by real estate economics and cultural preferences for flexibility. Membership or subscription-based models are dominant in urban centers, appealing to freelancers, startups, and agile teams who prefer month-to-month flexibility and amenities such as networking events and professional services. Operators like WOTSO and Fishburners thrive on this model, integrating community-driven value propositions. Lease or rental-based models are common among larger businesses and corporates that prefer long-term occupancy, with fixed workspaces, especially in Class-A buildings in CBDs. Hybrid models are gaining prominence as coworking operators balance stability and scalability by offering both monthly memberships and long-term leases within the same facility. This model is effective in cities with fluctuating demand like Melbourne and Brisbane. Owned and franchise-operated spaces are gaining ground in suburban and regional areas. Franchises such as Regus and Workspace365 offer standardized experiences with local adaptations, suited for Australia’s diverse geographies. Government-backed coworking initiatives in places like Tasmania and Northern Territory often adopt the owned model to support economic decentralization. A notable trend in Australia is the use of coworking as a platform to promote sustainability and wellness. Operators increasingly embed biophilic design, net-zero buildings, and wellness programs into their business models to align with ESG goals of their members. The business model diversity in Australia reflects a maturing market that caters to highly varied demand profiles ranging from metropolitan tech startups to government departments and rural professionals.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Coworking Space Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Space Type
• Open Coworking Spaces
• Private Offices
• Virtual Offices
• Event Spaces & Meeting Rooms

By End User
• Freelancers/Individuals
• Startups/SMEs
• Large Enterprises
• Remote Work

By Business Model
• Membership/Subscription-based
• Lease/Rental-based
• Hybrid Models
• Others (Owned, Franchise-operated Coworking Space) Show more