Commercial property market is independent of residential housing

property

The outlook for the residential property sector is not good in 2005, but this sector is not correlated to commercial property which should prosper for a number of years

The numerous predictions of catastrophe in the residential property market have led some to the conclusion that commercial property must be caught up in the same asset bubble. This view appears to be supported by historical evidence, because the value decline in the housing market in the early 1990s coincided with a value decline in the commercial property sector between 1991 and 1993. Both sectors lost nearly 25% of their value, though this is far less than some of the equity market declines. But property markets took the better part of a decade to recover fully, while equities rebounded i...