Data suggests property rally 'unsustainable'

Commercial property may have regained some of the ground it lost since the Lehman Brothers collapse but it appears investor sentiment is cooling on the asset class.

Consistent weak data from the residential market and slow economic growth have caused fund managers to warn markets may turn towards the end of the year. This comes as M&G moves its £360m offshore Property fund from creation to cancellation pricing following “small but persistent” redemptions. Howard Meaney, head of property investment at LVAM, says “the heat is slowly coming out of the market” as investors deem the past year’s rise of around 24% in commercial property unsustainable. “The latest statistics show capital growth is slowing and the derivative curve is showing prices wi...