Softening in prices on way
Thursday 2 December 2004
Listed property trust and company share prices could be in for a softening after soaring for six months.
By The Landlord
Analyst Mark Lister, of ABN-Amro Craigs, has warned of an approaching adjustment in listed property share and unit prices, sparked by a looming economic slowdown.He said after a heady six months, during which property unit and share prices soared, the sector was fully priced.
But he stopped short of telling investors to sell shares or units, recommending instead they regard the stocks as a "hold".
"We believe the sector is at the top of the cycle, but we are reluctant to recommend investors exit their positions in New Zealand listed property vehicles on the basis of recent strong prices alone," he wrote in an eight-page analysis.
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