Market Update

Divestment Opportunity Knocks

Elevated investor demand, tightening yields, strong offshore capital inflows, steady capital value growth and an accommodative financing environment have combined to enable some high profile commercial asset transactions in recent times. In addition, the depth and diversity of buyers, targeting a range price points, has provided a very competitive auction market place.

Key Findings

• $10.6 billion worth of commercial property sales took place during the first half of 2017
• Transaction activity was down 7.6% and value of sales is down 11%, compared to 1H 2016
• Demand remains strong from all buyer types, however a lack of stock for sale has limited transaction numbers
• Institutional buyers continue to dominate sales, making up 61% of the total value of sales in Q1’s
• Yields across the majority of markets.