Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

2-Sense: Business insolvencies at 15-year highs, office towers take a major hit & population surge drives rental vacancies to a new low

Listen to this Australian Property Podcast episode now

Play Video

Welcome to this week’s edition of 2 Sense on The Australian Property Podcast, where we take a look at the week’s most interesting news headlines and break down what this means for you.

Mortgage Broker Chris Bates and Buyer’s Agent Pete Wargent are discussing business insolvencies hitting a 15-year high, why office towers are taking a major hit & Australian population surge driving rental vacancies to a new low.

Story 1: Business Insolvencies Hitting a 15-year High

  • Firms are starting to fail as the cost of capital rises
  • Why is this happening? The business cycle has been unusual, stimulus could have papered over the cracks
  • Big surge in small business failures, rising unemployment, and a fall in employment, particularly in the retail segment
  • What does it mean for property?
  • Distressed sales are still low for now. The unemployment rate is still 3.7%

Story 2: Office towers to take a major hit (according to a recent Morgan Stanley report)

  • ABS value of dwelling stock rose $325bn in the June quarter to over $10 trillion, driven mainly by increases in the mean dwelling price in NSW (+$32k) and QLD (+$26k)
  • However, Morgan Stanley reports office tower valuations could fall another 10-15%
  • Why is this happening? Working from home phenomenon has persisted, at least for 3 days per week
  • What does it mean? This could be interesting news for REITs and super funds
  • What does it mean for property? Commercial office prices to fall

Story 3: Record low rental vacancies

  • Record high population growth, and record low rental vacancy rates.
  • International arrivals in January hit 1.7m, the highest since January 2020
  • Why is this happening? Temp visas are at a record high of 2.55m, including a record 650,000 international students, with population growth at 2.4%.
  • What does it mean? Despite this, the rental market seems to be a bit steadier and less panicked
  • What does it mean for property? Ongoing rental shortages and pressures to continue for the next 2-3 years?

Podcast resources

Wanna sponsor The Australian Property Podcast? 👇

New sponsors of The Australian Property Podcast are coming soon.

Are you a bank, PropTech or property expert and want to grow your brand?

Tell us why you would make a great sponsor of The Australain Property Podcast. 

The information on this website and in our podcasts is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.

Share this episode:

Search by ticker code:
Generic filters


Like it? Get Owen's weekly newsletter.

Want to level-up your analytical skills and investing insights but don’t know where to start? We can help. Join 43,000+ Australian investors on our mailing list today and we’ll send you our favourite podcasts, courses, resources, investment articles and podcasts every week. Delivered to your inbox every Sunday morning. Grab a coffee and let Owen and the team bring you the best investment insights every week.

Skip to content