PropertyBuzz, your daily dose of property news.
Cash Rate Expectations Take a Dramatic Turn, A real estate giant forecasts Full Recovery of
Property Prices by Year’s End; and is it Time to Radically Rethink Our Office Spaces?
Welcome to Property Buzz! I’m Kyle Robbins.
Today is Thursday, the 26th of October.
The biggest story for today is that cash Rate Expectations Take a Dramatic Turn
– The Australian Bureau of Statistics reported a 1.2 per cent rise in the Consumer Price Index for the past three months, with annual inflation at 5.4 per cent.
– With the RBA hawkish on inflation, leading economists are now predicting yet another cash rate increase to 4.35 per cent.
– The Commonwealth Bank of Australia believes there’s a 70 per cent chance of a rate rise in November.
– The main contributors to the Q3 rise were automotive fuel, rent, new dwellings purchased by owner-occupiers, and electricity, with rent seeing the largest annual rise since 2009.
In other news
– House prices are expected to fully recover from the 2022 downturn by the end of the year, with growth recorded across all of Australia’s capitals.
– Sydney and Brisbane are leading the recovery, with prices in these cities expected to reach new records by the end of the year.
– While the pace of growth is slowing, Adelaide, Perth, and Sydney recorded the highest house price gains, while Adelaide and Brisbane saw record prices in the apartment market.
– Hybrid working is here to stay, according to experts from the McKinsey Global Institute, with office attendance stabilising 30 per cent below pre-pandemic levels.
– The shift to hybrid work has impacted office-dominated neighbourhoods, with fewer people on the streets and in shops, creating challenges for retail spaces.
– The demand for office space could be 13% lower by 2030, potentially reducing office real estate value by up to $800 billion.
– To stay relevant, the experts said offices need to be reimagined as places where employees want to be, with a focus on employee productivity and engagement.
That’s all for today.
See you again tomorrow, 27 October, for your daily dose of Property Buzz.