All-property values are down 18% from their mid-2022 peaks. And with appraisal-based cap rates still set to tick higher, we expect further small falls in values. That should take the peak-to-trough decline to over 20% by end-2025. At the sector level, we think office values will eventually fall by 45% from their peaks. But apartments should be the top performer over the 2025-2028 forecast, followed by retail.
We suspect southern metros will continue to outperform the six major markets and west coast metros as the South benefits from stronger population and employment growth.
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