In the Vicinity of doom

Monday, 1 June 2020

Lordy, this is what a commercial property crash looks like. Via VCX:

These are not run-down suburban malls we’re talking about. This is the Strand Arcade, Chadstone and DFO. With values down 11-13% in four months, you’d be hard-pressed to say that this is the bottom.

There has been some rebound in foot traffic but the future is still bleak with high unemployment baked in, sales structurally lower and the virus still a threat:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.