Overall sentiment in commercial property markets fell nine points to a two-year-low in the third quarter, according to the NAB Commercial Property Index.
Sentiment fell in all sectors, except CBD hotels which continues to benefit from the nation’s booming international tourism.
Bolstered by the surging demand in e-commerce, particularly concentrated along the eastern seaboard, industrial property was the next best performer, according to the survey which covers 300 property professional respondents.
NAB Group chief economist Alan Oster said the overall two-year low in sentiment was not unexpected.
“The fall was consistent with weaker business conditions also seen in NAB’s September Quarter Business Survey,” Oster said.
Looking ahead, confidence in the commercial property sector over the next two-year period has also fallen, with the outlook in retail especially low.