ECONOMIC PRESSURE SET TO CONTINUE TESTING FINANCIAL FOUNDATIONS

favoured for its growing income and capital appreciation, listed property – the cheapest entry point into property – was the top-performing asset class for near on two decades.

But a recession, global pandemic and concerns around debt levels among the country’s largest landlords have ushered in a different story.

On its own, the economic downturn was somewhat manageable, even given rental growth and vacancy pressures. But together with the Covid-19 pandemic, cash flows and capital values are coming under pressure. So too are debt levels, which have been taken on in the pursuit of opportunities both locally and abroad.

The first quarter of 2020 saw an aggressive sell-off in listed property shares. Despite small upticks, year-to-date the sector has lost about 37% of its value, and around 43% over a year.

Although on the receiving end of significant rental income disruption themselves,