Why momentum in some property shares is unjustified

The dive in equity markets last year threw up plenty of opportunities for investors to pick up some quality companies at heavily depressed valuations. That property stocks suffered some of the heaviest falls is not surprising. The March lockdown not only forced housebuilders to down tools, but sparked wider concerns about a collapse in house sales and prices. Meanwhile, forcing high-street stores to shut meant many retailers held back on paying rent, causing sharp falls in asset values.

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