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Property yield

Discussion in 'CP1' started by happyhogger, Nov 25, 2020.

  1. happyhogger

    happyhogger Made first post

    HI ,

    can someone please explain to me "why does an increase in bond yields lead to a decrease in demand for property, and hence an increase in property yield"? ( CP1-11 pg 28)

    thank you
     
    happyhogger, Nov 25, 2020
    #1
  2. mugono

    mugono Ton up Member

    An increase in bond yields will increase demand to buy bonds. This will reduce the demand for other assets, e.g. property. Property yields will increase as the property price drops to attract buyers.
     
    mugono, Nov 25, 2020
    #2
  3. happyhogger

    happyhogger Made first post

    got it. Thanks mugono.
     
    happyhogger, Nov 26, 2020
    #3

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