22 June – BRIEF – On the economically sustainable front commercial property values continued to crash in some countries, but post mild returns in others, according to the latest IPD Global Property Index.
A report posted by IPD today said that across 23 of the world’s “most mature real estate markets” the range of returns best to worst was a massive 42 percentage points. So much for a synchronised Global Financial Crisis.
“At the two extremes were Ireland, at -37.2 per cent, and South Africa which produced +4.4 per cent, this positive capital growth albeit reflecting domestic inflation of 11.5 per cent,” IPD said.
The US and UK showed double figure declines in contrast to “much more muted or delayed responses in the other three biggest markets – Japan, Germany and France.”
Australia’s response too has been more muted, so far. For details see https://www.ipd.com/OurProducts/Indices/Australia/tabid/427/Default.aspx
IPD’s co-founding director, Ian Cullen, said that given the recession it was not surprising that the index broke records “in the sharpness and scale of the correction in investment property prices recorded.”
One highlight – or lowlight – was Japan where real estate markets annualised return to February 2009 was -3.0 per cent, comprised of a -7.6 per cent capital return, a new record low down 129 basis points since December, offsetting the 11th consecutive stable income return, at 4.9 per cent, IPD said.
Go to www.ipd.com/indices for all firstname.lastname@example.org