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Will the Oslo-Stockholm all-property yield differential widen?

If the euro-zone crisis worsens and economic growth in Norway and Sweden disappoints, property yields in both Oslo and Stockholm are likely to rise by 30bps to 50bps over the next 12-18 months. Although our central forecasts do not envisage a marked shift in the yield spread between the two markets, yields in Oslo are likely to rise a little further than in Stockholm. 

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