The value of prime office property, along with industrial and retail assets, has stopped falling and will start to rebound as borrowing costs ease, but some will never return to levels seen before the COVID-19 pandemic, according to real estate executives and investors,

Office values have been particularly affected after the pandemic, as higher financing costs and more people working from home have left them looking less attractive to investors – and empty. In all, the local office sector’s value has dropped 22 per cent since the previous peak, more than the 19 per cent fall during the global financial crisis.