Australian commercial property values and supply backdrop
Cushman & Wakefield flagged cyclical repricing risk for Australian commercial property as interest rates reverse, with 10-year yields back to 2011 levels.
Residential correction seen cutting national house prices by up to 15% from peak, setting a weaker macro backdrop for real assets.
Commercial fundamentals still firm as supply scarcity supports rents; major retail landlords report near-zero vacancy, visits up over 3%.
Construction costs up more than 40% in five years, undermining development feasibility, limiting new stock across most sectors.
Data centers remain an outlier; hyperscaler capex targets USD 1 trillion in 2026, Sydney vacancy at 2.2% despite 131MW added.
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