Bids data: behind the headlines on APAC investment activity

Source: JLL Research

Office deals were in decline — and when they did occur, price declines were recorded. In 1Q 2023, deals closed at a price 12.7% lower than asking. Key deals that drove this price discount were Concordian Building in Seoul, Osaka Bay Tower and 260 Queen Street in Sydney.

In 2Q 2023, deals closed 5.7% lower than the asking price. In Australia, 44 Market Street in Sydney traded at ~17% discount to book value. Meanwhile, in South Korea, office saw the least repricing relative to retail and logistics, owing to strengthening investor demand and increasing opportunities on the market.

Figure 2: Office Bid-Ask-Close Spread

Source: JLL Research

Investors continue to look for signs of a bottoming out. Dry powder sits around, awaiting deployment.