Market Insight

Market insights: Q3 transactional report (2019)

October 1, 2019

In our latest property market insights report, we take a look back at how the market performed in Q3 2019.

The market remained stagnant in Q3 with continued uncertainty relating to Brexit and the General Election. This was evidenced in the 23% decrease in transactions compared with the same period last year.

As a result of the political climate, the number of off-market deals was becoming more prevalent with investors targeting active buyers in the market to secure premium pricing.

£10.76bn was invested in the UK property market in Q3 2019, a 19% increase on Q2, but down 35% on Q3 2018.

Regional offices enjoyed a buoyant Q3 up 31% on Q2, however, down 29% on Q3 2018. 

A notable deal was the purchase by Alpha Real Capital of Temple Quay House for £73.3m. The investment was let to the Secretary of State for 18 years unexpired, demonstrating the weight of money for long income investments.

Industrial investment volume fell to £815m from £1.21bn in Q2. However, investor sentiment remained strong, backed by healthy occupier demand targeting ‘last mile’ logistics.

Retail investment continued to be subdued with the effects of online retailing and consumer spending habits impacting the amount of floor space required by occupiers. Alternatives, on the contrary, had a strong Q3 with over £5bn invested.

Meanwhile, local authorities remained active in the market, albeit for the 1% rise in the Public Works Loan Board borrowing rate. Typically, this related to local authorities who have been less active over the last 18 months. Portsmouth Council’s acquisition of Lakeside North Harbour in the city, was one of the largest office deals in Q3 at £138m.

To review key transations in Q3 and a regional market snapshot across the Thames Valley, Solent and Gatwick areas, download the full report below.