Total returns were negative again in Q2 at -2.0% q/q. This was dragged down by the office sector, where values fell by 7% and quarterly returns were -5.8%, with all other sectors outperforming the all-property number. Nevertheless, we still think office values have a further 20% to fall, while we also expect industrial and apartments values will drop by 15% from current levels by the end of next year. For retail, we think prices may only fall by another 5% or so.
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