After a pause in April, the downwards drift in commercial property yields resumed in May. Combined with a rise in rents, this helped to boost capital values by 1.1%m/m. That pushed up the annual growth rate from 7.7% in April to 8.8% in May. A simple projection from recent growth rates suggests that capital values will be up by 9%-10% in 2014 as a whole, in line with our forecasts.
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