‘Rebound is here’: Office funds post first positive return in 2 years

Campbell Kwan and Nick Lenaghan

Apr 21, 2025 – 5.06pm

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Office towers held in the country’s biggest property funds have delivered their first positive quarterly returns in more than two years, one of the strongest signs yet of recovery for a sector that has endured steep write-downs since the rise of the hybrid working.

Office funds holding more than $34 billion in assets booked a 1.1 per cent total return over the first quarter of calendar year 2025, according to the MSCI/Mercer Australia Core Wholesale Monthly Property Fund Index.

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.

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.