Office investment sales headed for slow start in 2023 amid price gap, higher borrowing costs

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.