Property Snapshot August 2008

Published: July 2008
Source/Company: Colliers CRE

Abstract:
A month on and the ‘double-dip’ seems firmly entrenched with many market observers suggesting that IPD figures are lagging market movements substantially. Commercial lending is arguably more difficult now than a month ago. The value of investment transactions for July fell to 1999 levels.

The economy continues to slow with the likely prospect of a few quarters of economic distress. Oil and food commodity prices have moderated, but it is too soon to say whether this will be a lasting respite that affords flexibility with UK base rates.

The prospects for renewed investment transactions are improving as yields reach levels that cash buyers will find difficult to resist.

One year on from the onset of the Credit Crunch, there are a few positive signs from the banking sector that the worst may have passed.

However, the possibility of new unforeseen twists remains. We will continue to monitor carefully.