Derivative prices and funds flows: more signs of an improved outlook

Commercial property derivatives pricing continues to improve. Moreover, the net outflows from pooled property investment funds, which have characterised the past couple of years, appear to have gone into reverse in 2009Q2. Individually, these developments may not be hugely significant. But when added to the recovery in real estate equity prices, reports of stronger activity in the auction rooms, as well as reports that yields in some segments of the market are now falling, these data add to the sense that the commercial property market may have reached a turning point.