"We estimate that with the significant pipeline of major transactions currently underway totalling $2.1bn volumes will reach in excess of $6.6bn for the 2015 calendar year. This represents a slightly lower figure than the record high in 2014 of $7.4bn, but an exceptionally strong year in a historical context." But most of the big transactions in Q4 are expected to be in the office sector. "Off the the back of the Morgan Stanley /CIC transaction we can definitely sense the increased weight of investor expectations for prices in commercial assets to further condense in the fourth quarter," CBRE director Josh Cullen said. "There is always a fourth quarter rush but coupled with continued low levels of debt and interest rate, we can expect increased investor demand." Michael Stokes, of CI Australia, said 2015 would be significantly bigger than last year but said there are signs the market could be getting closer to the top. "The strong results of the last two quarters has prompted a lot of institutional owners to liquidate non-core sub-optimal stock. These can be seen as indicators that a market is peaking." Colliers International, which advised on the GIC deal, is predicting $2.5 billion industrial will transact by the end of the year, with about $850 million of that in the final quarter. "During the sale of the GIC portfolio you saw a number of industrial owners sitting on the sidelines who have now pulled the trigger, such as JP Morgan," Colliers director Gavin Bishop said. "What's different now compared with 2007 is there is a positive spread between cost of debt and return on property, whereas pre-GFC it was negative. Back then the market was driven by debt and it was more localised. Australia is now more of a global market.
Further reports suggest that the Australian property market may well have reached its peak , and that a fall in prices is imminent . This article suggests that investors in the market will put over AUD 5bn worth of office towers , shopping centres , and logistics centres up for sale ﻿over the next three months , partly due to the record high prices , and partly because the final quarter of the year has typically represented a strategic time to sell property , ( such as to record the proceeds in end of market results)﻿.