Office markets have tightened further in the already strong markets of Sydney and Melbourne even as conditions in resource affected capitals have become more favourable to tenants, a new report shows.

Releasing its latest office market report, the Property Council of Australia said the national office vacancy rate across all capitals contracted slightly from 10.5 per cent in January to 10.4 per cent in July. Whilst vacancies continued to blow out in cities such as Brisbane, Perth and Adelaide, those in…