Values across the Sydney CBD office tower sector have risen for the first time in three years, marking a potential turning point as the country’s largest market recovers from weak demand and high interest rates.

While Sydney’s gain is modest – a lift of just 0.7 per cent in capital values in the March quarter, its first since early 2022 – it also reflects a tightening bid-ask spread and renewed buyer interest after a prolonged correction, according to property analytics firm MSCI.