Property value growth slows in Q3 - IPD

Published 04th Nov 2011

Growth in the value of offices, shops and warehouses slowed to 0.3 percent in the September quarter, from 0.5 percent in the prior quarter, with the stagnating economy hurting the country's real estate market, research showed on Thursday.

The total property return, which includes rental moves and property values, was 1.8 percent in the September quarter, down from 2.0 percent in the preceding three months, Investment Property Databank (IPD) said in a statement.

"The impact on consumer spending has been quite severe, and thus the retail sector is one of the hardest hit, as people have less money in their pockets," said Malcolm Frodsham, research director at IPD.

"Shopping centres saw a decline in values for the first time since September 2009, down 0.4 percent," he said.

The biggest riser was offices in London's West End, where values grew 1.8 percent in the three months to end-September.

Ongoing global economic uncertainty, which has prevented many financial services companies from signing for new space, meant growth in values fell from 2.8 percent to 1.1 percent in the City financial district, IPD said.

Property values fell 42.2 percent between their last peak in June 2007 and March 2009, before climbing 21.2 percent to the end of September, IPD said.

Source: ' Reuters '

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