Property no longer cheap

morley says investors should not expect repeat of strong performance of recent years in 2005

Property is no longer cheap and investors should not expect the strong performance of recent years to be repeated in 2005, Morley Fund Management has claimed. Nevertheless, the group expects returns from mid-2004 onwards are likely to be nearer 8% pa than the 12% achieved annually over the past three years. Janet Measom, product specialist, property, at Morley Fund Management, said: "The downward pressure on yields on commercial property, as a result of upward pressure on values, has occurred at the same time as interest rates have risen. As a result, property is no longer cheap." She ...