New Zealand's commercial property sector faces a weak outlook due to high vacancy rates, slow rental growth, and high interest rates, according to RBNZ report.
New Zealand's commercial property sector faces a weak outlook due to high vacancy rates, soft rental growth, and strained owner cashflows from high interest rates, according to the Reserve Bank of New Zealand (RBNZ) Financial Stability Report. However, the financial system is better prepared to manage risks, with enhanced regulatory requirements and improved lending standards. Banks are urged to remain vigilant and closely monitor developments in the sector, as economic challenges could worsen and impact construction, employment, and loan defaults.
August 27, 2024
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