Higher interest rates and softer demand – exacerbated by the persistence of the work-from-home trend – could send some office building values tumbling another 20 per cent lower, according to a survey of analysts and economists by The Australian Financial Review.
While all commercial property classes will be exposed to higher rates and bond yields – the 10-year government bond yield is a key determinant for commercial real valuations – the office sector was seen as most vulnerable, according to the panel of nine experts.
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Campbell Kwan covers commercial and residential real estate for The Australian Financial Review, based in the Sydney newsroom. He was previously the breaking news reporter. Email Campbell at campbell.kwan@afr.com
Nick Lenaghan edits the property section, which covers all aspects, from residential real estate and housing and construction to commercial property – office, retail, industrial – and major ASX-listed developers and real estate investment trusts. Connect with Nick on Twitter. Email Nick at nlenaghan@afr.com
