Commercial Property Slowdown Prompts Buyers to Consider Asia

New data has revealed that commercial property prices increased at their lowest rate for more than six years during August....

New data has revealed that commercial property prices increased at their lowest rate for more than six years during August.

The Investment Property Databank's (IPD) monthly index suggests that Britain's retail and office building values rose by just 0.1 per cent over the course of the month.

Breaking this down further, IPD said that industrial properties saw the first reversal in value growth since mid 2009, as prices slipped by 0.05 per cent

Meanwhile, rents for industrial property also declined by 0.1 per cent in August, although office rents climbed 0.1 per cent for the fourth consecutive month.

Rents for retail properties posted a 9.3 per cent unbroken decline since Sep 2008, IPD added.

The news adds fuel to the argument that the recovery in the market is beginning to falter.

Indeed, Reuters reports that a number of commercial property dealmakers are considering making a move to the Asian markets for new money-making opportunities.

Phil Tily, managing director of IPD UK, said: "Markets have - for now at least - plateaued, as rents and yields moved fractionally in August.

"However, calm periods are as good a time as any to reinforce the message that investors should remain vigilant of any risks within their property portfolios."ADNFCR-3415-ID-800065202-ADNFCR

- Thursday 16 September 2010

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