The number of commercial properties sold at auction fell sharply in the first quarter of 2007 as yields on commercial property fell below those on bonds, according to a survey on Wednesday.

Figures from the Royal Institute of Chartered Surveyors show there were 26 percent fewer sales at auction relative to the fourth quarter of 2006.

Demand for commercial property in Britain picked up last year but the market’s allure has been dimmed in 2007 by a sharp rise in bond yields and a strong equity market performance.

“The bull market run in commercial property is coming to an end,” said RICS senior economist Oliver Gilmartin. “Fewer sales at auction reflects investor caution for commercial property, as yields have fallen below those of more liquid asset classes.”

Posted: 06|27|07 at 5:43 pm. Filed under: UK News.