A report from the National Australia Bank showed that the country's commercial real estate market has many feeling pessimistic.
The bank's commercial property index declined to minus-16 during the second quarter. This was a significant decline from the first quarter's figure of minus-8, as well as the lowest level in two years. The markets that had the most pessimism were industrial and retail.
Much of the retail woes were because of the recent declines in consumer confidence and many foreign companies taking advantage of an improving Australian dollar, according to the report. The retail index was not significantly changed, as it rose to minus-43 from the previous quarter's minus-45, while the industry index fell to minus-27 from the earlier figure of minus-17.
"Consumer confidence is still seen as the biggest challenge facing property firms," said NAB chief economist Alan Oster. "Economic and financial market volatility have again emerged as major concerns as confidence was likely eroded by recent turmoil in Greece and Spain."
The report added that the office index dropped to 5, which was down from 12 in the first quarter.