City office investment volumes reached a record high in Q2 2018, with £3.6 billion of stock traded over the course of the quarter, according to global real estate advisor, CBRE. The elevated level of activity was led by the £1 billion sale of 5 Broadgate to Hong Kong-based investor, CK Asset Holdings. This is the third £1 billion plus building to trade in the last 18 months.

After a slow start to the year with just £2.8 billion transacted in the first quarter, total Central London office investment volumes rose by 85% quarter-to-quarter to £5.3 billion in Q2 2018. This represents a 67% increase on the same period last year and brings the 2018 half year total to £8.1 billion. This is broadly on par with the £8.2 billion that transacted in H1 2017.

Thirteen deals over £100m transacted over the course of the quarter, more than in any quarter since Q1 2016, and whilst there was a healthy mix of investment types and geographies, overseas investors dominated the market once again.

International capital accounted for the largest share of investment, representing 82% of the investment total for the quarter. A total of £2.8 billion was acquired by Asian investors during the quarter, accounting for 50% of the total. As well as continued activity from Hong Kong, investors from Singapore and South Korea were also active, a trend that is likely to continue. Over the last 12 months, overseas investors have accounted for 86% of the market, the highest proportion for any 12-month period on record.