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Majority of markets overvalued

Although property yields ticked down only slightly in Q1, rises in both government bond yields and equity dividend yields meant that property valuations deteriorated. For the first time since we have been producing valuation scores, the majority of our 93 markets are overvalued. This suggests that, unless those alternative asset yield rises reverse themselves soon, the long-touted story of a historically high property yield gap has come to an end.

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