The hanging Sword of Damocles

摘要

Like peeling back the skin of an onion, each layer of the property investment market reveals something different about the state of play and, unless you have prepared properly, you may well end up in tears. Property has traditionally assessed yields relative to the anticipation of rental growth. Today's eye-wateringly low yields are not consistent with normal assumptions, Rents in many sectors have recently reached all-time highs, but in the last year or so they have started to soften. The exception is the tortured retail sector, where rents have generally collapsed and there are no signs we have reached the bottom.