Soft jobs market could impact on commercial real estate
A recent survey of the Australian job market may give commercial renters a reason to look for more affordable properties, after it was shown that future job growth may drop off some time in the future.
The ANZ job ads index recorded a month-on-month fall of 0.7 per cent in both internet and newspaper advertising for new and existing roles in October.
This is the sixth time over the last seven months that the figure has been shown to fall - with the increase in the rate year-on-year only reaching 1.8 per cent.
Head of Australian economics and property research at ANZ Ivan Colhoun said that the slowdown was most likely a reflection of increasing unemployment rather than broader economic concerns.
Colhoun stated: "The decline in job advertising to date is very moderate, more like the slowing in 1996-97 than the collapse in advertising witnessed during the GFC in 2008-09."
He explains that the broader implications of a rising unemployment rate - coupled with wage shifts and inflationary pressures - are likely to lead to an interest rate cut in December of 25 basis points.
This change could be good news for businesses looking to secure new premises, with increased access to funds to facilitate a move to new offices.