About a year ago, GlobeSt.com found that experts saw the coming of 2023 in the U.S. with uncertainty, which led to falling transactions and resulting obscurity of pricing. The result was large bid-ask gaps and plenty of unrealistic expectations on the parts of many.
Extend that outward to the globe and it sounds like what markets are seeing today, according to a new study from MSCI, written by Tom Leahy, executive director of MSCI Research, which looks at loss aversion on the part of owners and property-market liquidity. There is still a big bid-ask price gap in some of the largest office markets.
Put more plainly, the report says that up to half of investment properties in both London and Hong Kong may be worth less than their most recent purchase prices.
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