RTTNews - Commercial property prices in the U.K. fell 0.8% in June, data released by the CB Richard Ellis showed Tuesday. Overall property prices were 44% below their peak in mid-2007.
The CBRE monthly index revealed that the commercial property market appears to be nearing an inflexion point. The property broker said all property total returns more or less stabilized in June, down 0.1%, following several months of gradual improvement.
David Wylie, head of economics and forecasting at CBRE said, The stabilization in total returns suggests that the long and sizable outward yield shift since the market peak has finally run its course.
Rental values of all properties fell 0.9% in June, slower than May's 1.1% contraction. At the same time, all property equivalent yield remained unchanged over the month at 8.4%.
The firmness of yields across the market suggests investors may now be looking through the current weakness and seeing value in today's pricing, Wylie said.
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