Property management group Dexus said 173 of its 1761 assets, 33 office properties and 140 industrial properties, decreased in value by $762.4 million or 5.2% in the six months leading up to Dec. 31, according to external valuations.

The office portfolio value decreased by 6% due to higher capitalisation and discount rates, partially offset by rental market growth.

The industrial portfolio fell by 2.1%, with rental growth offsetting rises in capitalisation rates and discount rates.

The total portfolio's average capitalisation rate expanded by 34 basis points, the office portfolio by 32 basis points, and the industrial portfolio by 42 basis points.