Australian Alternatives Outlook 2025

Animated publication

1

5.85%

5.65%

Business confidence improves

Unemployment rate moves towards 4.5%

Economic growth improves due to easing consumer headwinds

CRE credit starts to thaw and flow

Decision making timeline normalises

Core inflation improves towards 3%

Book Values Stabilise

Supply pipeline thins given capital constraints and construction costs

Consumer confidence improves

Capital markets transactions momentum continues

RBA pivots and starts rate cutting cycle

10Y bonds fall to ~4.0%

Alternatives yield compression cycle begins →

Q1 2025

Q2 2025

Q3 2025

Q4 2025

Q1 2026

Macroeconomic/Financial Indicator

CRE Fundamentals Indicator

CRE Debt Markets Indicator

CRE Capital Markets Indicator

AUD 8bn* *Completed and under construction

4.25%-4.75%

AUD 20bn

4.75%-6.25%

AUD 5bn

4.75%-5.50%

AUD 35bn

11.50%-13.00%

AUD 5bn

4.50%-7.00%

AUD 40bn

4.75%-6.00%

AUD 40bn

6.00%-7.50%

AUD 56bn

4.50%-6.00%

AUD 15bn

4.00%-7.00%

AUD 4bn

7.25%-9.00%

AUD 25bn

4.75%-5.50%

AUD 14bn

5.00%-6.00%

AUD 9bn

5.00%-6.00%

AUD 7bn

$5bn 5.00%-6.00%

AUD 27bn

7.50%-8.00%

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