OUTLOOK 2023
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Office investment sales headed for slow start in 2023 amid price gap, higher borrowing costs
Activity is expected to pick up when interest rate outlook clears, aiding price discovery
Published Thu, Dec 29, 2022 · 05:50 AM
THE market for big-ticket sales of office assets is heading for a slow start in 2023 – after a weak performance in the last two quarters of this year.
A significant buyer-seller price gap will continue to be a major hurdle in sealing deals – especially for income-generating office assets.
“Institutional buyers will probably watch and wait for a few more months, for visibility on interest rates peaking before jumping in,” said Jeremy Lake, managing director of investment sales and capital markets at Savills Singapore.
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