Commercial property markets deteriorating: RBA

RBA board members noted that conditions in commercial property markets were deteriorating.

This followed several years of commercial property price growth in excess of growth in rents.

Prior to the COVID-19 outbreak, parts of the retail property market were facing challenging conditions owing to weak consumer spending and heightened competition.

Following the outbreak, some retail tenants had been seeking suspensions in rent payments or large rent reductions.

Members noted that the risks in commercial property markets warranted close monitoring.