It shows that:
- Gradual transition towards a comparatively lower “new normal” for interest rates
- Relationship between property yields, interest rates and bond yields is nuanced and complex
- Spread between property and bond yields, 75 bps above long-term average: cushion to protect property in higher bond yield environment
- Capital values supported by market-specific factors during periods of rising bond yields
- Stock selection and effective asset management to drive rental growth and healthy returns
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.