HK - Commercial Properties & REITs

[winston]

Mainland Chinese firms likely to need another 4 million sq ft in office space in Hong Kong, Colliers says

Mainland Chinese companies will occupy 18.06 million sq ft in Hong Kong in 2025

They are estimated to be occupying about 14 million sq ft currently

by Cheryl Arcibal

Source: SCMP

https://www.scmp.com/business/article/3 ... fice-space

[winston]

Commercial property deals decline by 35pc

by Aiden He

35 percent year-on-year decline but up 28 percent from 2020.

Source: The Standard

https://www.thestandard.com.hk/section- ... ne-by-35pc

[winston]

Midland points to recovery in shops

The number of new shop registrations rose 7.4 percent month-on-month to 101 in March, with the total value going up 6.2 percent to HK$2 billion, according to Midland IC&I.

Only shops with a value under HK$5 million or between HK$10 million and HK$20 million recorded an increase in registrations in March, the former being up by 27.5 percent month-on-month to 51 cases and the latter up by 28.6 percent to 18 cases.

Meanwhile, a total of 279 street shops were registered in the first quarter, up by 9.8 percent from the previous three months and their value going up by 45 percent to HK$5.17 billion, the agency said.

The number of mainland visitors to Hong Kong is expected to rebound to 2 million a month in the coming months from just 1.1 million in February, to render a boost to the market sentiment.

Source: The Standard

https://www.thestandard.com.hk/section- ... y-in-shops

[winston]

Hong Kong office rents and rental values expected to decline further amid uncertainties about global, Chinese economies, analysts say

Vacancy levels rose in the first half to 15.7 per cent and will continue to rise as new developments are completed, and rents are expected to edge down by another 1 to 2 per cent, CBRE analyst says

Hong Kong office rents could continue to fall in the second half, as some companies might further downsize offices by adopting hot-desk arrangements: Bloomberg Intelligence

by Lam Ka-sing

Source: SCMP

https://www.scmp.com/business/article/3 ... dcd98ed010

[winston]

G Sachs Axes Asking Price by 30%+ for Commercial Building it Holds in Sheung Wan: Wire

Bloomberg reported, citing sources, that the asking price of Goldman Sachs (GS.US) for the entire 88WL commercial property it owned has fallen by at least a third, signalling a downturn in Hong Kong's property market.

The building is located at 88 Wing Lok Street in Sheung Wan.

It is learnt that the asking price of the 25-storey 88WL building has dropped sharply from over $1.3 billion earlier this year to $900 million.

It is unclear whether the property is held by Goldman itself or on behalf of a client.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

Cushman & Wakefield Foresees HK Office Rents to Drop 7-9% in 2024, Street Shop Rents to Grow 2-7% in 1H24

Looking in hindsight at the performance in 2023, John Siu, Managing Director, Cushman & Wakefield Hong Kong, said the overall business climate remains cautious amidst the uncertainties in the global economy, and cost control remains a top priority for enterprises.

As such, office leasing activities have not marked any evident rebound after reopening, with the outstanding rental rate being higher to the 18% level.

Office rentals, as a result, have come under pressure. The overall Grade A office rents have sagged 7.2% year-to-date as at the end of November.

In Siu’s opinion, the pace of new office leasing after reopening was slower than the market's earlier expectation.

This, coupled with the fact that there may still be new supply projects completed before the end of the year, the outstanding rental rate will inevitably be shored up to over 19%, even above the record high of 18.1% in the first quarter of 2004.

In addition, given nearly 1.2 million square feet of new Grade A office space completing next year, office rents were expected to continue to adjust downward by 7%-9% for the year.

Kevin Lam, Executive Director at Cushman & Wakefield, separately said that looking ahead to next year, he believed that more shops in the retail market will upgrade and consolidate activities to the core locations, with consumers attaching more importance to experiential consumption.

This will help to improve the vacancy rate, which in turn will support the performance of rents.

He expected that the rents of street shops in various districts in the first half of next year will be able to maintain a single-digit growth of 2%-7%.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

Large Investment Institution Rents Two IFC Whole Floor with Rent Diving 30%+ from Peak: Sources

The entire 62/F of Two IFC, which was originally rented by BNP Paribas, was recently rented by Franklin Templeton, a large investment institution.

The rent is likely about $130 per square foot, which plummets by more than 30% when compared with the peak rent of $200, market sources divulged.

The institution originally rented Chater House in the same district, whereas the originally rented floor was rented by an American fund for expansion, sources furthered.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN