Property Investment Market Slows

The CB Richard Ellis Monthly Index showed:
•The All Property total return was 1.1% in June, with annual returns up to 26.7%.
•All Property capital growth was 0.6% in June, with values up 6.8% since the start of the year.
•The strongest performing market sub-sector over the month was Central London offices, which recorded total returns of 1.8% for a second consecutive month.
•All Property rental values fell by 0.2% in June, down 0.9% in H1.
•All Property equivalent yields were flat in June at 6.9%, the first month without a yield shift since August 2009.

Nick Parker, Economics and Investment Senior Analyst for CB Richard Ellis UK, commented: “The property investment market is clearly slowing, with investors turning more cautious and yields flattening. Outside Central London, occupier markets remain fragile. The greater improvement seen in London’s occupier markets has saved it from the same fate as some of the regional markets in the second quarter of 2010. With the summer months now upon us, a further slowdown in investor activity could have an impact on competition for property and trends in yields.”