The price of freehold pubs has fallen 22% year-on-year, with sites flooding the market as pubco disposals continue.
About a quarter (26%) of these were for alternative use, with 50% more change-of-use sales in the south than north, according to a report by Fleurets.
The price of freehold pubs has fallen 38% since pre-recession 2007.
Director Simon Hall explained that alternative uses are worth more in the south, and because freeholds are profitable, a lot of private operators have "chosen to sit tight in the hope of better prospects for a sale in the future".
Graeme Bunn, also of Fleurets, pointed out that there will be more supermarket "metro" stores and residential developments as pubs continue to close.
The low-end freehold sector has had the most sales activity, says the report, with the average sale price falling by 6.3% nationally.
The agent said the demand has been driven by larger pubcos with a higher number of vacant properties.
Nationally, 53% of low-end freehold sales were for alternative use. This percentage was consistent across the regions, apart from East Anglia, where it was 25%.
The report also suggests that the troubles experienced by high-street operators have reduced activity in the pub leasehold market.
Many operators have been forced to sub-let, sometimes at a price lower than the market value. With lessees failing, more of the pubs are going back to the operator.
Fleurets found the average sale price of leases was down by 17%.
But Hall said new lettings on flexible terms had increased demand, "as finance on leaseholds has been difficult to obtain".
Bunn noted a further problem: wet-led venues struggling to incorporate food successfully.
However, he was optimistic about the future: "The return of private equity firms into the pub market, with the purchase by TDR Capital of 333 principally wet-led venues from Mitchells & Butlers, is encouraging and points to a more active and optimistic year ahead."