Goldman: Office values to CRASH

Via AFR:

The bleak outlook is driven not by the potential impact of the pandemic on the CBD office market, but the sharp pullback in values and rents due to a cyclical downturn that was already well under way before the coronavirus outbreak, Goldman Sachs analysts said in a recent client note.

…Goldman Sachs expects vacancy in the Sydney CBD to peak about 13 per cent by the end of 2022, when net effective rents will fall by 40 per cent. Peak vacancy, also close to 13 per cent, will hit the Melbourne CBD a year earlier, with net effective rents to drop by 42 per cent.

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