The latest UK
Retail Property Auction Index shows that in the final quarter
of 2012 the index decreased to 88.0 representing a change of
-1.2% year-over-year.
The IPD/Acuitus UK Retail Property
Auction Index, produced in association with EIG, is based upon the
change in retail property values sold at auction. The index
provides greater transparency on price movements observed in the UK
auction rooms, which are often seen as a leading indicator for the
secondary market.
Acuitus Chairman, Richard Auterac,
comments: "Whilst this is the lowest point that the index has
reached since 2003, it is also the slowest rate of decline since
2010.
"The average year-on-year fall for
2011 was -17.30% but for last year it was just -4.28%. So there has
been a dramatic reduction in the rate of decline in the Index which
would seem to indicate that prices are bottoming out. As a matter
of interest, at the height of the market in Q4 2007, the index
stood at 132.1.
"The disparity between pricing achieved in the auction room and
valuations is vividly illustrated by the corresponding IPD
valuation index which stands at 99.7.0. As you might expect while
the RPAI only fell by 1.2% in Q4, the valuation index tumbled
4.6%.
"It is apparent that valuations still need further adjustment to
reflect where prices are by at least a further 10% and could be as
much as 20%."
To download the RPAI for Q4 2012 please
click here