Valuation experts are warning of the growing risk of overpricing in core commercial zones as guidance rates and market expectations continue to climb rapidly. While these central business areas remain highly desirable due to their connectivity, infrastructure, and established business ecosystems, experts caution that unchecked escalation in land pricing could outpace actual demand and financial feasibility for many businesses and developers. Overpricing may lead to slower transaction volumes, longer absorption periods for commercial spaces, and increased pressure on rental yields, ultimately affecting the overall health and stability of the commercial real estate market.

The concern stems from a mismatch between revised guidance rates, which are often set in anticipation of future growth, and the present economic realities faced by businesses grappling with rising operational costs, evolving work patterns, and shifting consumer behaviors. High acquisition costs could discourage new entrants, deter expansions, and prompt existing businesses to seek more affordable options in peripheral areas or emerging business corridors. Experts are advocating for a more balanced and data-driven approach to valuation updates, where real-time occupancy rates, transaction activity, and tenant affordability thresholds are given significant weight during the guidance revision process.

If not managed carefully, overpricing in core commercial zones could also divert investment to alternate locations, slowing the momentum of established business districts and disrupting the broader urban economic framework. Valuation specialists emphasize the importance of continuous market monitoring and stakeholder engagement to ensure that guidance rates support sustainable growth rather than artificially inflating land values. A pragmatic approach to commercial land valuation will be key to maintaining the competitiveness, vibrancy, and long-term resilience of core urban commercial hubs.