It shows that:
- Gradual transition towards a comparatively lower “new normal” for interest rates
- Relationship between property yields, interest rates and bond yields is nuanced and complex
- Spread between property and bond yields, 75 bps above long-term average: cushion to protect property in higher bond yield environment
- Capital values supported by market-specific factors during periods of rising bond yields
- Stock selection and effective asset management to drive rental growth and healthy returns
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The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.