Although the low-transaction environment persists, Colliers' Asia Pacific cap rates report for the fourth quarter of 2023 shows early positive signs for the region. Five of 19 cities surveyed across Asia Pacific saw upward quarter-on-quarter movement in cap rates across all sectors. Each of these markets were in Australia — Adelaide, Brisbane, Canberra, Melbourne and Perth (see table below).

While owners, investors and occupiers remained cautious about real estate investments, and due diligence processes had lengthened, there were positive signs emerging across the region.

“There are signs that interest rates have peaked in some markets, resulting in a more positive sentiment towards investments. Consequently, we expect to see more market activity and a gradual recovery in 2024,” says CK Lau, Colliers’ managing director of valuation and advisory, Asia.

While the office sector lost some of its shine in many markets in the past year, assets that are up-to-