Collins Stewart not ready to call bottom of property

Group underweight in 'overbought' commercial property sector but nadir yet to come

Collins Stewart is facing cautious optimism the UK commercial property market has reached its nadir but says it is not quite ready to call the bottom. It is remaining underweight the sector, saying while current yields appear attractive (if they are sustainable) in the short term, the sector appears overbought, with broker Alan Brierley adding he would not be averse to locking in recent gains. Brierley says in June 2007, the IPD All Property Monthly index fell 43%, with most of the capital falls being driven by outward yield movements. With property yields now at 7.8%, and at a record...