Secondary property values could fall by a further 10% in the first two quarters of this year, according to Jones Lang LaSalle’s capital markets lead director, Chris Ireland.
Speaking at the agent’s Property Predictions 2012, Ireland said values may have already fallen 10% in the final quarter of 2011 as the markets “react ahead of valuations”.
He pointed particularly to the secondary shopping centre market, which had a poor Q4.
Ireland said the secondary market is expected to be driven by bank sales, which would encompass assets in all sectors. However, he added that this would not just comprise direct property sales because poorer quality assets could also be transferred as part of loan sales.
Ireland said that, following the fall in values, the second half of the year would see more buying activity from opportunity funds.
bridget.oconnell@estatesgazette.com
