‘Property sector subdued’

The property sector is subdued due to the illiquid conditions and harsh operating environment which has spawned increasing levels of rental defaults, market players have said.

In their financial results for the full year 2015 released last week, Pearl Properties and Zimre Property Investments Limited (ZPI) said the sector was experiencing weak demand for leased space and other real estate products.

“This resulted in rising voids and debtors as well as falling revenue due to reduced uptake of leased space and falling rental rates,” ZPI chairman Buzwani Mothobi said in a statement accompanying the company’s financial results.

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