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Office sector leads Asia Pacific cap rate movements
Research - OCTOBER 31, 2024

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Office sector leads Asia Pacific cap rate movements

by Jennifer Molloy

Cap rate movement across Asia Pacific markets is being driven by the office sector, according to Colliers’ Asia Pacific Cap Rates Report Q3 2024, with eight out of 18 cities covered in the research recording changes in their office sectors. This was driven by the Australian CBD markets of Adelaide, Brisbane, Canberra, Melbourne, Perth and Sydney, as well as Hong Kong.

CK Lau, Colliers’ managing director of valuation and advisory services in Asia, said the steadying of interest rates across major markets was leading to increased sentiment in all sectors. “The U.S. Fed cut the benchmark federal funds rate by 0.5 percent in September, fostering positive sentiment in the real estate sector,” noted Lau. “This has led the way in encouraging more activity in the market.”

According to the report, Australia has experienced an uptick in transaction activity, indicating a potential softening of yields. In Bangkok, the office sector has seen stable cap rates q

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