Property transactions plunge to lowest levels

Property transactions plunge to lowest levels



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Even though investment volumes have increased this quarter, research has shown that the volume of property transaction have fallen to the lowest level recorded since Q2 of 2008….

Even though investment volumes have increased this quarter, research has shown that the volume of property transaction have fallen to the lowest level recorded since Q2 of 2008.


It has been announced from research conducted by Lambert Smith Hampton, in the UK Investment Transactions Bulletin (UKIT) Q2 2014, that property is the most expensive it has ever been since the tail-end of the last boom.

Results show that even though quarterly investment in UK commercial property totalled £11.9 billion in Q2 of this year, (10 per cent up on the first quarter of the year), the all property transactional yield has crashed to 6.06 per cent.

Apparently, one of the reasons for the rise this quarter is the strong demand for good quality shopping centres.  Some of the purchases in this quarter included Land Securities’ purchasing a 30 per cent stake in the Bluewater Centre for £656 million at a yield of 4 per cent. While this is a one-off deal, UKIT stated that it illustrates the depth of demand for these prime assets.  

Research also showed that £491 million was invested into property funds in May alone, where regional investment totalled £18.6 billion in the last 12 months, compared to £11 billion in the last year.

From the data, we will start to see a huge shift in the market, as investment volumes are up, as are capital values, where investors are much more active in the regions. It has been stated by UKIT that prices outside London are also now on the rise.  

  
 

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