Dexus Research today released the Australian Real Estate Quarterly Review Q4 2022. This report describes the outlook for Australia’s main commercial property markets.

Key themes include:

• In office markets, demand has been mixed across the capital cities over the past year, with rising face rents and higher incentives
• Rent growth has accelerated in the industrial sector with vacancy remaining at record low levels
• Retail turnover growth is strong, however vacancies in shopping centres remain elevated
• The healthcare sector is likely to benefit from increasing government spending and a level of independence from the economic cycle
• Capitalisation rates have expanded across all sectors in response to higher interest rates and volatility in financial markets. Any further price softening is likely to vary greatly between assets depending on quality, location and degree of leasing risk

Peter Studley, Dexus Head of Research said: “Headwinds for the economy, including rising interest rates, are affecting all asset classes and real estate is no exception.

"While conditions are likely to become more challenging in the year ahead, Australian real estate markets should benefit from stronger economic growth relative to other advanced economies.

“Positives for the economy include improving population growth and high levels of infrastructure spending.”

To view and download the report click here.