Property valuations improved in Q4, after they stabilised in the previous quarter. This was largely on the back of the vaccine announcements, which drove a recovery in equity prices and lowered dividend yields. As a result, all property sectors look either undervalued or essentially fairly valued by our measure. But, with uncertainty over office and retail income streams elevated at present, we think current pricing will not be enough to attract investors to anything but the best assets. Further ahead, we expect rising property yields will continue to improve valuations in the coming months.
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