With all that has occurred recently as a result of the American Sub-Prime crisis … Property Investors are finding it hard to gauge the current market.
Some are preferring to “sit and wait”. Whereas, others are seeing it as an opportunity to secure a good deal … while the present confusion reigns.
Even though America may be part-way through its recession, the general consensus seems to be that it will be short-lived. And things will start getting back on track, during the second half of this year.
h4. Meanwhile, what affect is it having?
Yields for Prime properties in all three Commercial Sectors (office, retail and industrial) have not been greatly affected. There might have been a decline in the volume of properties being sold; but generally, yields appear to be holding at the moment.
However, if properties are peripheral (either in their quality or geography) … then you may have seen some selling yields ease out by about 0.25% to 0.5% from what they were in late 2007 — depending on the type of property, and where it is.
h4. Looking forward …
If everything goes as predicted, the market should stabilise by around August/September. Then, demand ought to pick up (and yields may even start to firm a little) towards the end of this year.
