Grade A office rents in Hong Kong’s CBD hit highest level since the Global Financial Crisis
Grade A office rents in Hong Kong’s Central district hit HK$107.4 per square foot, their highest level since the Global Financial Crisis in 2008, but property consultants expect the price growth to stabilise due to uncertainties in the global economy.
Property consultants said rents in Grade A buildings in the city’s Central Business District have been rising due to the tight vacancy environment.
Prices rose by 0.6 per cent month on month to HK$107.4 per sq ft, according to the latest report released by JLL on Wednesday.
The tight vacancy environment and demand for prime spaces in Central and Admiralty contributed to the rising rents, it said. But it curbed leasing activity with the total number of new lettings in Central dropping by 55 per cent month on month in June, according to JLL.
The vacancy level in the Central Grade A office market increased from 1.3 per cent in May to 1.4 per cent in June but was still the lowest among the main business districts.
Overall, the office rental take-up has weakened due to uncertainties in the global economy.
