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Valuations worsen further, but may be bottoming out

Commercial property valuations worsened for the sixth quarter in a row in Q2, and for all-property is now the most overvalued since late 2007. But since the end of June gilt yields have edged back and we doubt they will match their previous peak over the next couple of years. With property yields also set to rise we therefore doubt that valuations will continue to deteriorate.

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