Unlike the US and Europe, Australia has not suffered a banking crisis. Therefore, our banking system is still capable of providing credit for normal growth.
With the US unemployment rate approaching 10%, this will delay any quick turnaround for the Commercial property sector.
Decoupling from the US
As you would expect, there is a strong correlation between high unemployment, tenancy contractions and falling commercial property prices. And as a result, a reluctance by banks to provide credit.
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