Welcome to CoreLogic’s housing market update for December 2023.
NAB Commercial Property Index fell -3 to -6 points in Q2 and continues to track below business confidence. NAB Group Chief Economist Alan Oster said: “Sentiment was weaker in all market segments, except CBD hotels, and also negative in all states, especially in WA.”
NAB Group Chief Economist Alan Oster said: “Sentiment was weaker in all market segments, except CBD hotels, and also negative in all states, especially in WA.”
By sector, market sentiment and expectations remain strongest for CBD hotels.
Sentiment fell most in the industrial property market in Q2, but it continues to be the strongest performer behind CBD hotels.
Retail sentiment was slightly lower in Q2, although forward expectations have improved marginally.
“In contrast, office property continues to under-perform the broader market, especially in WA and Queensland, where survey respondents reported relatively large falls in capital values and rents amid elevated vacancy rates and market over-supply”, said Mr Oster.
On the development front, fewer developers are planning to commence new works in next 1-6 months, while the number looking to start residential projects has fallen to its lowest level since mid-2013. Developers also said access to funding was slightly more difficult during this survey period.
Mr Oster said: “Property firms are now clearly most concerned over stock availability, especially in Victoria, but concerns over government red tape / regulation / bureaucracy and consumer confidence have also risen”.
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