2007-09-29

Managing risk in global property (5)

How will this affect property?(2)


The combined impact of these issues has clearly had a significant effect on market sentiment.

However, there are also some direct implications for property markets


Negative impact on direct property markets

‧ Increased borrowing costs and reduced availability of finance are likely to have a negative impact on direct property markets.


This could potentially lead to

i) higher cap rates and consequently,

ii) lower property values.


Source: AMP Capital Investors, Australia

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