With Treasury yields rising in Q4 and property cap rates falling for the first time since mid-2022, our property valuation scores declined across the board. This supports our view that the recovery in 2025 will be weak.
There remains a gap between appraised values and sales prices, which suggests further downward pressure on property prices, especially for the office and industrial sectors. The all-property valuation score returned to slightly overvalued, supporting our view of a weak investment recovery.
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