Broker Morgan Stanley is concerned over the future of asset values in the commercial property market.
The
property investment arm of financial services company Morgan Stanley has expressed concern over the future of UK
commercial development asset values.
Based on the latest Investment Property Databank Derivatives, there is a possibility that UK asset values will see a 20 per cent fall by the year 2015, the Independent reports.
Although it is unlikely, such a slump is a possible and would depress share prices by an average of 60 per cent and lead to deep discounts in trading, according to the broker.
"With shares broadly fairly valued ... we think the risk-reward profile is skewed to the downside as we see more scope for a significant correction than for continued improvement," Morgan Stanley representatives told the newspaper.
Financial publication City Wire recently suggested that current conditions in the UK commercial property market bear many similarities to those seen before the 1994 crash, as growth begins to tail off.
Posted by Lisa Fear.
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