HK office rents to slide by 14pc
Property agent expects overall Grade
A office rents in Hong Kong to fall by 14 percent in 2020 as economic growth
and leasing momentum are projected to slow amid the coronavirus pandemic.
Although scheduled future Grade A
office supply is limited, office leasing momentum will remain generally slow
this year. Occupiers are becoming more cost conscious, with some opting to
downsize and explore cheaper office space, buildings and locations, the agent
said.
From a capital market perspective,
there is hesitation from institutional investors as Hong Kong investment sales
declined 58 percent quarter-on-quarter and 90 percent year-on-year to HK$3.4
billion in the first quarter.
Current market conditions are
expected to persist throughout the year when property prices come under pressure
across different sectors providing investors with opportunities.
The agent said well-established firms with
stable capital flow could look to relocating into a traditionally
competitive space in the CBD as growth in vacancy rates and greater rental
corrections in 2020 provide more options.
(The Standard)
City One Shatin rent falls below $10,000
The monthly rent for a two-room unit
at City One Shatin has fallen to less than HK$10,000 - a substantial change of
direction for such a property.
The 304-square-foot flat was rented
for HK$9,800, or HK$32.2 per sq ft. That was 10 percent lower than the first
asking price.
Reflecting the same trend and also
plumbing record lows, the government received only HK$3,000 in land premiums in
the first quarter, the Land Department revealed.
Department officials registered only
two lease modifications in the quarter without any premium figuring.
In the mainland property market,
Longfor Group (0960) announced that Charm Talent International, a substantial
shareholder controlled by the developer's chairwoman, Wu Yajun, subscribed to 4.2
million shares through a share placement at a price of HK$36.50 on Tuesday.
That came as Wu's ex-husband, Cai Kui, the second-largest shareholder in
Longfor, was placing 78.3 million shares worth up to HK$2.88 billion. They were
priced from HK$35.25 to 36.75 per share.
Charm Talent has thus raised its
shareholding in Longfor from 43.9 to 44 percent, while Cai will continue to
hold 23.3 percent.
(The Standard)
