CBD commercial property facing 15% price bust

Citigroup has forecast that the value of office buildings in Australia’s major CBDs could fall by more than 15% ($50 billion) in the wake of the coronavirus pandemic.

Demand for centralised office space is likely to fall if the shift to working from home is sustained once the crisis abates. This in turn could put downward pressure on office rents.

Meanwhile, JLL has forecast that the total amount of vacant office space across the nation’s CBDs will rise from 1.46 million square metres prior to the pandemic to about 1.88 million square metres by the end of 2020.

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