Vacancy rates, page-20

I still believe its good value and will do well over the long term.

It is very uncharacteristic of me to sell a quality business that i believe is cheap. When i bought into UOS in Sep 2016, i knew that a hot KL property market presented a risk, but invested regardless, as i didn't know how imminent a risk this was and I felt that the long term prognosis was good.

However, when i saw the last lot of vacancy rates, i felt (without being an expert here) that this was very likely to be a leading indicator of a severe property bust (and my discussion with @Jimmy_C further convinced me).

I don't know how, or even if, this will play out. I have no idea why the market didn't visibly react when these figures were released, but i fail to see how such a dramatic rise in vacancies will not be followed by a potentially serious cashflow crunch. I also think that it is exceedingly unlikely that such a cashflow crunch will not be followed by a serious share price reversal.

When i combined the above with my relatively high uncertainty with respect to country risk, and the fact that it was likely a much cheaper price would be on offer at some point soon, i decided that "capital preservation" was the most rational course of action.