News roundup: India shuts down schools as temperatures sizzle, plus other stories

For PropertyGuru’s news roundup, Indian authorities shut schools early for the summer holiday due to the blistering heat. In other news, big shopping centres are in demand again with Australian investors, and hybrid working arrangements and new office spaces are expected to contribute to a 22 percent vacancy rate in the Philippines by the end of the year.

India shuts schools as temperatures soar

According to CNA, Indian authorities in the capital have ordered schools shut early for the summer holiday after temperatures hit 47.4 degrees Celsius with Delhi gripped by a “severe heatwave”.

Delhi city officials asked schools to shut with “immediate effect” due to the blistering heat, according to a government order quoted by the Hindustan Times on 21st May, cutting short the term by a few days.

India’s weather bureau has warned of “severe heatwave conditions” this week, with the mercury reaching the sizzling peak of 47.4 degrees Celsius in Delhi’s Najafgarh suburb on Monday, the hottest temperature countrywide.

Shopping centres back in vogue in Australia as private equity buyers light the way

Big shopping centres are back in demand from investors, with listed giant Stockland cashing in by selling its Glendale centre in Lake Macquarie, NSW, to private equity real estate investor IP Generation for about AUD315 million.

realcommercial.com.au reports that shopping centres have emerged as the surprise packet of commercial real estate this year with big malls selling and more trades in the works as a group of opportunistic funds managers are joined by big institutions getting back into the market.

While office buildings are languishing, the shopping centre interest is being driven by investors chasing high returns after the big reset in the retail property industry in the wake of the coronavirus crisis which crunched values and rental levels.

The crisis up-ended the industry with landlords picking up the tab as they gave support to tenants. But they also quietly used the chance to remix centres and boost tenant quality, drawing customers back.

Hybrid work, new supply to drive 22 percent Philippine office vacancy rate this year — JLL

Hybrid working arrangements and new office spaces are expected to contribute to a 22 percent vacancy rate by the end of the year, according to JLL Philippines in BusinessWorld.

“By the end of 2024, what we forecast for vacancy levels is to reach around 22 percent and the reason for that is to expect an additional 500,000 square meters of all stock on demand,” JLL Philippines Head of Research and Strategic Consulting Jan-Loven C. de los Reyes said during a press briefing on Thursday last week.

“That would apply supply pressure on the market, considering that we have heavy vacancy levels that are in the double digits across cities,” he added.

JLL said the first quarter vacancy level eased to 19.9 percent from 20.3 percent in the fourth quarter of 2024.

The Property Report editors wrote this article. For more information, email: [email protected].