Property Pricing Survey, July 2012
- Property continued to be a selective buy across all sectors in Central London and the South East, ranging from a 36% preference for Central London industrials to 86% for South East industrials.
- Other geographic locations remained mainly sale targets across all sectors.
- The north/south divide has continued from the March 2012 survey, with the south a buy and the north a sale.
- The 2012 total return was again revised down quite sharply, by 260 bps (250 bps March survey) to 1.0% pa from 3.6% pa in the March survey (6.1% pa November 2011).
- Total return for 2013 was also revised downwards to 6.1% pa, a 100 bps drop from the March survey of 7.1% pa (7.9% pa November 2011 survey).
- Yield movement for prime saw an average 29 bps increase, greater than the 16 bps seen in the March survey.
- Secondary yield outward movement was greater, with an average of 56 bps across all sectors. Secondary property is bearing the brunt of negative sentiment.
- Prime continued to be overpriced except for offices and distribution, unchanged from the March 2012 survey.
- Secondary was underpriced except for secondary retail units and shopping centres.