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Valuations stabilise, but still further to rise

Property valuations stabilised in Q3, on the back of a marked improvement in Q2. This meant that, apart from industrial, all sectors looked either undervalued or fairly valued by our measure. However, with income streams highly uncertain in the near term, we don’t think current pricing will be enough to entice buyers yet. Looking ahead, with the rise in property yields having further to go, property valuations are set to improve further against other assets.

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