Investors are now able to better spot opportunities in the global commercial property market with a new tracking index launched yesterday.
The DTZ Fair Value Index susses out investment opportunities in commercial properties in a particular market by comparing expected returns with risk-adjusted required returns over a five-year investment period.
The index then gauges the market’s attractiveness by classifying it as”hot”, “warm” or “cold”, using the difference between the two categories of returns as a basis.
A “hot” market is one where properties offer attractive returns, while a “warm” market offers mediocre returns. A “cold” market offers unattractive returns.
The index offers 17 indices covering 180 cities and are classified under office, retail and industrial sectors. According to the index’s findings, Singapore’s commercial property market is “hot” – for office, industrial and retail sectors.
Source : Today – 20 Aug 2010