Valuation scores held steady in Q2 and continue to suggest the sector is a little overvalued. This underpins our view that values still need further falls to support a stronger pickup in investment volumes. At a sector level, industrial looks to be the most overvalued, and we still expect appraised cap rates for industrial assets to climb over the coming quarters. On the other hand, while offices look undervalued, the sector still has some capital value falls to come thanks to falling NOIs.
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