REFURBISHMENT INVESTMENT AND PROPERTY PERFORMANCE

Abstract

The prolonged property market downturn from the collapse in late 1981 has exposed some underlying truths about property investment. The rapid pace of technological advancement and changing tenants' requirements forced some building owners to take remedial steps to remain competitive in the rental market. But the awareness of the adverse effects of obsolescence is lacking. As the building becomes obsolete, it experiences low rentals and falling occupancy. The downturn emphasised the importance of improving specific qualities of the property in order to preserve capital values. Periodic refurbishment can remedy this malaise and ensure continual marketability of the property. This study seeks to establish the importance of refurbishment to realise expected rental growth in the future. Local market trend in such works will also be looked into.