Commercial property price growth holds steady after recent record highs

The annual rate of growth for apartment prices has also hit an all-time high, with May’s 23.3% pace matching April’s record rate. The index for retail properties climbed 18.8% from the previous year. While still a double-digit growth rate, MSCI noted that the pace has eased for three consecutive months.

Read more: Interest in apartment investment weakens despite solid NOI growth

The office sector index grew 12.2% annually, primarily driven by a 13.4% increase in prices of offices in CBDs – the fastest rate of growth for CBD offices since 2014. Suburban office prices increased 10.5% from a year prior, while growth in the index for suburban offices has remained unchanged or decelerated for eight months in a row.