4 | Insights H1 2026 At a glance: Key market drivers Chris Nicholl, CEO of Raine & Horne, sums up the key factors shaping today’s commercial property market. Rates climb higher, sellers need to be realistic The 0.25% February rate hike could be seen as a game changer for the investment market but as the Reserve Bank of Australia (RBA) has observed, “market expectations of the cash rate had risen noticeably since around August 2025” . The experience of Raine & Horne commercial property experts around Australia suggests many investors were aware of the prospect of a rate hike in early 2026, and as a result, have factored higher borrowing costs into price negotiations. This calls for sellers to take a realistic approach when it comes to asset pricing. https://www.rba.gov.au/monetary-policy/rba-board-minutes/2026/2026-02-03.html https://www.rba.gov.au/monetary-policy/rba-board-minutes/2026/2026-02-03.html https://www.abs.gov.au/media-centre/media-releases/household-spending-down-04-december https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-falls-41
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