Top CBD office towers could lose another 10 per cent to 15 per cent in value over the coming year while the workplace sector grapples with both the higher cost of debt and weaker demand as hybrid work patterns take hold.

Over the past 18 months, commercial property values have come under pressure as 10-year bond yields – a key determinant for value – rose steadily. The office sector has been the most vulnerable, with less ability for landlords to raise rents to offset pressure on valuations.