The United Kingdom is already in the midst of a repricing phase, judging by the number of distressed sales.
In Japan and Korea, the first distressed sales have appeared in the first quarter of this calendar year.
Australia is expected to follow with a period of repricing stretching from roughly the second quarter until the end of 2009.
"What we are saying is that Australia will take about a year to reprice," LaSalle international director Jacques Gordon said during a presentation of the company's "Investment Strategy Annual" report last month.
The office sector will see a gradual weakening of rental trends. Vacancy rates are expected to lift slightly as capital expenditure spending will constrain relocations and expansions.
Retail property prices will remain stable given the tight regulatory constraints on new development.
Repricing in the sector is not necessarily bad news for property investors. Australia was a market with a high level of transparency and it had the tendency to self-correct quickly after new price levels were established, LaSalle said.
