The lowering in taxes, contained in this year's Budget, should
increase the attractiveness of property as an investment option.
This should halt the increase in capitalisation rates, says Rode's
Report editor, Dirk de Vynck.
Capitalisation rates - the property equivalent of the forward
earnings yields of equity - reflect investor perceptions.
"As such, a stabilisation in capitalisation rates could bring an end
to the destruction in market values we have seen over the last few
years."
Publisher: The Star
Source: The Star
