Transaction activity in the Australian commercial property market appears to be trending up, but sales activity in 2023 will almost certainly be well down on last year’s results.

There were $29.2 billion of sales in the office, logistics & industrial and retail sectors during 2022, according to JLL, compared to just $11.8 billion for the first nine months of 2023.

Transaction volumes did increase between the second and third quarters, from $3.5 billion to $4.0 billion. And sales activity is expected to increase further this quarter. “The outlook for Q4 is a robust transaction environment that should see momentum build into 2024, as local and offshore investors re-enter the markets,” JLL’s Australasian head of capital markets, Luke Billiau, said. However, total sales in this calendar year are on track to be lower than last year.

“The fall in transactions since the beginning of 2023 is indicative of the pricing discovery in the market as a result of rapidly changing funding costs and a low-leverage environment relative to other global markets that prolongs this period,” Mr Billiau said.

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