How far and fast might non-prime capital values rise?

As we had been anticipating, non-prime property has started to outperform prime. Our forecast is that average non-prime capital values rise by 10% this year and about 6% in 2015. That will be stronger than the gains for prime property of about 5% each year. Non-prime total returns should average close to 14% p.a. over 2014-15, well ahead of prime at 10%.

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