This makes for a challenging environment for owners of these buildings, particularly for owners of older or lower quality office buildings as tenants have taken the opportunity to move into newer buildings as rents have come down. But again, while a difficult time for developers and owners of office buildings, the financial stability implications seem limited.
https://www.rba.gov.au/speeches/2019/sp-ag-2019-03-20.html  11/14  3/20/2019  Property, Debt and Financial Stability | Speeches | RBA  Graph 9  https://www.rba.gov.au/speeches/2019/sp-ag-2019-03-20.html  12/14  3/20/2019  Property, Debt and Financial Stability | Speeches | RBA  Graph 10  Conclusion Vulnerabilities from the level of household debt, the apartment development cycle and the level of non-residential commercial property valuations continue to present risks for financial stability.