News

On 26 March this year, a prominent Sydney newspaper ran a screaming headline: “CITY HOME BOOM OVER”.

The official cash rate has lifted again this month to 2.60 per cent for the sixth consecutive month. This is the highest the rate has been since July 2013 when it was 2.75 per cent.

After a landmark year in 2021 of commercial transactions, 2022 has seen a distinct slowdown, given the rapid changes in interest rates and rising bond yields putting the brakes on many financiers and investor confidence.

Investing in property has always been a popular way to build wealth in Australia but data on investor lending is now showing that investors are pulling back.

We recently conducted our Real Estate of Origin, our tri-annual appraisal drive and this one didn’t disappoint!

The Reserve Bank of Australia has increased the cash rate for the seventh month in a row. The cash rate increased from 2.6 per cent to 2.85 per cent.

Coming off a two year period of high sales volumes and compressed yields, the Australian commercial property market has already shown signs of decreased investment activity and yield correction off the back of rising interest rates.

Over the past decade, the median in Sydney has increased the most.

Although people buying and selling property quickly have done well through the pandemic, holding property long-term is always the best strategy to build wealth.

And so this is Christmas. Another year is over. It’s hard not to become reflective at the end of the year, to take the opportunity to review the year that was; the ups and the downs.

For the eighth month in a row we saw the Reserve Bank of Australia (RBA) increase the official cash rate. In its final meeting for 2022, the central bank increased the rate from 2.85 per cent to 3.1 per cent in its ongoing bid to cool rising inflation.

Here's a list of some of the things think will happen in commercial property in 2023