Further job losses needed for office rents to fall: UBS

Further job losses needed for office rents to fall: UBS 

  

UBS says further job losses are needed for office rents to decline.

 

It tipped that 200 thousand financial sector job losses are required to reach a “trigger” level.

 

The investment bank noted that during the 2001 financial market slowdown, lay-offs totalled 100 thousand globally.

 

Job losses resulting from the current credit crisis so far have amounted to 47 thousand in the 10 months ending April.

 

UBS said for Singapore, Sydney, Tokyo and Hong Kong, the next three years of supply only equates to 20 percent of the last five years’ average annual demand.

 

It forecasts rents in the City of London to fall 25 percent over the next two years, reflecting the supply/demand imbalance.

 

Source: 938Live

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