The FTSEpx All Property TR index fell by 0.6% in October, hit by the cooling in the UK property market, which has started to affect the values of the underlying properties in the index, said index manager MSS. While the decline in asset values of UK commercial property had been anticipated for some time and, the credit crunch in the capital markets has made he dip more dramatic than anticipated, the company added.
The FTSEpx All Property TR index fell by 0.6% in October, hit by the cooling in the UK property market, which has started to affect the values of the underlying properties in the index, said index manager MSS. While the decline in asset values of UK commercial property had been anticipated for some time and, the credit crunch in the capital markets has made he dip more dramatic than anticipated, the company added.
Equities have now outperformed real estate over all periods in the past 12 months, although the lower volatility of real estate returns continues to attract long-term investors. Ironically, MSS said, REITs have faired the worst, falling19.5% over the last 12 months and 3.6% in October alone. And despite recent liquidity issues, hedge funds have been resilient, returning 0.9% for the month.
