Australian Office Outlook 2025

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%

Office 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