Chart of the Day: Investments in office developments soared 62% to $7.6b in 2019

The capital value of Grade A offices climbed 3.9% to $2,518 psf.

This chart by Colliers International reveals that investment sales in office or mixed office developments surged 62% YoY to $7.6b (US$5.7b). In Q4 however, transaction volumes plummeted 63% QoQ after a strong Q3.

The average imputed capital value of CBD Grade A office properties climbed 3.9% YoY to $2,518 (US$1,869) psf in 2019. In Q4, capital values edged up 0.2% QoQ.

Also read: Grade A office rents to see slowest growth in four years

Outlook for capital market volumes are optimistic, given a favourable interest rate outlook and demand-supply dynamics, Colliers added. Capital values are also projected to grow a modest 2% in 2020, given continued investors’ interest in a low interest rate environment.