With more certainty around office fundamentals, office investment activity rebounded strongly in 2021 with over A$5.28 billion transacting, a 47.19% increase on 2020 volumes. 2022 will continue to see strong appetite for prime grade long WALE assets with a strong tenant covenant. Buyer demand is expected to accelerate throughout the year and there is scope for further tightening of yields, particularly for prime assets. There is more opportunity to be unlocked as borders re-open and offshore buyers return, adding increased competition to the domestic market. With pent-up demand from foreign investors who have not been able to physically inspect property in Australia in the last 20 months, the reopening of borders will deliver a higher volume of buyers and result in more transactions across the country.
Colliers sold 65 Office Middle Market transactions during 2021, a significant 85.71% increase on 2020 results. Positively, the average sale price of assets transacted increased by 11.36% in Metro markets nationwide with CBD sales falling by 14.78%. Domestic investors dominated transactions accounting for almost 92% of all Office Middle Market transactions with off-shore purchasers sourced by the Colliers team accounting for over 58% of all off-shore investments across Australia, due to Colliers extensive team across its 400 global locations with 1,100 professionals.
Colliers are proud to hold a 45% market share in the Office Middle Markets since 2021.