Just watched an interview with ceo of GPT, very interesting it...

Just watched an interview with ceo of GPT, very interesting it was on inside business on ABC.

Essentially part of interest to me was comments on reits in general and commercial property.

When questioned on property values, he asserted that the property valuations have fallen due to debt (as we all know) not from oversupply.

The very interesting point made was that as debt markets recover and have not yet, there will be an upsurge in prices paid for property. This is directly related to the fact that there has been little or no new developments and as there is no oversupply, the property valuations will quickly increase.

I then submit that if property values in the future quickly recover, then the gearing will quickly reduce (maybe over simplistic).

As valad has no short term debt issue IMO, then there should be some surety of future.