Valuations steady in Q4, but improving sharply in Q1

Property valuations generally improved a touch in Q4 on the back of a nearly 50bps fall in equity earnings yields as equity prices rose. This was the fourth consecutive quarter in which valuations had improved, albeit the smallest improvement in that series. That said, movements in alternative asset yields in the first two months of 2020, triggered by the coronavirus-driven market sell-off, point to a significant improvement in property’s relative valuation in the first quarter of 2020.