Property Market Performance
Published: 22 July, 2010
Evidence of a slowdown in the recovery of retail property markets is becoming increasingly apparent. According to IPD’s Monthly Market Segments, capital value growth across all retail property segments in May was just 0.52 per cent, the lowest rate of monthly growth since August 2009.
Shopping centres (+0.54 per cent) grew broadly in line with the general rate. For the first time since September 2007, shopping centres outperformed retail warehouses (+0.49 per cent), as the latter showed signs of cooling. Within the third retail property class, standard shops, there remained a clear regional polarity, with values in the South East (+0.77 per cent) growing at more than double the rate of the rest of the country (+0.38 per cent).
According to Stephen Springham, head of retail research at King Sturge, rents remain in negative territory across the board. Rents for all retail in April were down by -0.26 per cent, with shopping centres down by a further -0.5 per cent, the 26th consecutive month of rental decline.
