PS I actually think it is a good time for them to dump the...

PS I actually think it is a good time for them to dump the property if they need to.

It is apparent to me that whilst there has been some softening of commercial property yields they have not properly adjusted to the 325 basis point increase of the RBA cash rate since May 2022. Currently the return premium for commercial property over the risk free interest rate on government bonds is at historically low levels. There is currently the potential for large price declines as this gap normalises with commercial property competing with the higher yields now available on cash, government and bank bonds. - I am sure the situation is similar over in NZ, recency bias is a very interesting thing. Industrial rents have shot the lights out but for every 1% softening in yields rents need to increase 25%.