Property Forecasting > Report
Latest data updates have not changed our view that the upswing in the Sydney CBD office market still has four to five years to run and will only end when sufficient supply comes on stream to balance the market.
Indeed, growth in the stand alone office workforce is coming through stronger than we had expected for FY2019. However, low vacancies are constraining demand, with extra growth feeding into lower workspace ratios. As a result, there is little change to our vacancy forecasts.
As a result of lower bond rates, we expect a little more near term firming in property yields. Moreover, we have also flattened our medium term forecasts for bond rates since our March report, leading to lesser yield softening mid next decade. Overall, our forecasts continue to indicate strong further gains in rents and values before an expected market peak in 2023.
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