UBS has issued a pessimistic outlook for the local property market, warning rents in shopping malls could drop by up to 25 percent.
The investment house said rents in luxury malls will drop by 20 to 25 percent by the end of 2017, while other malls are also likely to see rents fall by 15 percent.
This comes after many malls issued rent hikes last year when renewing leases with tenants.
But UBS said it believed the drop would come from the heightened supply of retail space in the next three years.
This post was published at David Stockmans Contra Corner by The Standard ‘ April 5, 2016.
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