HK - Commercial Properties & REITs

Re: HK - Commercial Properties & REITs

Postby winston » Wed Nov 07, 2018 8:08 am

Office rents in Hong Kong’s Central district may drop for first time since 2013, says Colliers

Hong Kong’s Central district, the world’s priciest office address, may see rents fall 4 per cent next year, says the property agency

The tanking stock market, rising interest rates and the US-China trade war are all taking a toll on the confidence of financial firms, which make up the bulk of Central’s tenants.

It commands annual rent of US$307 per square foot, almost a third higher than the US$235 per square foot in London’s West End.

Financial tenants occupy 54 per cent of Grade A office space in Central.

Half of the new leasing deals in Central in 2017 were signed by mainland companies while so far this year they only accounted for 30 per cent.

By the end of the third quarter, Grade A offices in Central fetched HK$148.7 per square foot. Colliers expects that to inch up to HK$148.8 per square foot by the end of 2018, bringing the full-year increase to 9 per cent.


Source: SCMP

https://www.scmp.com/business/article/2 ... -2013-says
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Re: HK - Commercial Properties & REITs

Postby winston » Wed Dec 05, 2018 7:12 am

Hong Kong’s overheated office prices to bear brunt of trade war, volatile markets and rising rates, says Savills

Prices of grade A offices and prime street shops are forecast to drop 5 per cent next year

Housing prices could fall by up to 10 per cent, says Savills

Prices of grade A offices have rallied 16.6 per cent from December 2017 to September this year, with space in Central costing HK$63,610 per sq ft in September.

Demand from mainland investors and developers, already saddled with high debt, also fell as they were reluctant to take on additional debt. They are instead trying to dispose off some property.




Source: SCMP

https://www.scmp.com/property/hong-kong ... -trade-war
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Re: HK - Commercial Properties & REITs

Postby winston » Wed Dec 19, 2018 1:46 pm

JLL: Grade A Office Building Demands Flattering, Nov Tenancy Surrender of 58,700 Sq.ft.

JLL report pointed out that the tenancy demands for Hong Kong Grade A office buildings are on persistent slowdown.

The tenancy market recorded negative net capacity of 58,700 sq. ft. last month as the demands failed to catch up with the area vacated upon expiry of contracts.

The month-on-month rental growth of general office buildings decelerated to 0.3%.

Source: AAStocks Financial News
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Re: HK - Commercial Properties & REITs

Postby winston » Mon Dec 24, 2018 7:46 am

Gloomy outlook for Central office rents in Hong Kong, as economic storm clouds gather, analysts say

Monthly office rentals in Central began to soften in November, ending a three year trend of rising rates

Gathering economic storm clouds are likely to put further downward pressures on rents in 2019, with analysts forecasting declines of up to 6 per cent

Monthly office rents in Central and the surrounding areas of Sheung Wan and Admiralty will fall by 4 to 6 per cent to about HK$154.90 (US$19.79) per square foot, according to Cushman & Wakefield.


Source: SCMP

https://www.scmp.com/property/hong-kong ... g-economic
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Re: HK - Commercial Properties & REITs

Postby winston » Tue Jan 08, 2019 7:52 am

Hong Kong’s office landlords are lifting the bar on creditworthiness as more commercial tenants walk away from leases

Several office owners are doubling, in some cases tripling, the money they require as security deposit, particularly for tenants who are unknown to them

The industry norm in Hong Kong is for three months’ worth of rent as deposit

Source: SCMP

https://www.scmp.com/business/investor- ... ifting-bar
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Re: HK - Commercial Properties & REITs

Postby winston » Wed Jan 23, 2019 7:23 am

Hong Kong’s Central district to see further 5 per cent gain in office rents this year, Nomura says

Demand from co-working firms and limited space outside Central to push up office rents in 2019

The revised estimate marks a 180 degree turn from the bank’s prior estimate for a 5 per cent drop in office rental rates this year.

Kwock cited higher demand from financial institutions, slowing decentralisation by law firms and limited space outside Central as additional factors for the revision.

“At present, there are more than 50 [co-working] operators at more than 80 locations in the city, covering more than 1 million square feet.

Many new operators, especially those from mainland China, are still eager to establish a foothold in the city”.

“China funds’ expansion into Hong Kong and take-up of prime office space in Central was another major trend”.

The asking rent for prime office space in Central ranged from HK$97 (US$12.36) to HK$192 per square foot in November, according to figures from CBRE.

Hong Kong will not see a major wave of new office supply until 2021 to 2023, when space becomes available in Two Taikoo Place in Quarry Bay, the Murray Road project and as the Hutchison House redevelopment is completed.


Source: SCMP

https://www.scmp.com/property/hong-kong ... ain-office
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Re: HK - Commercial Properties & REITs

Postby winston » Thu May 23, 2019 7:45 am

Central office rents to fall

by Stella Zhai

Cushman & Wakefield expects rent of grade A offices in Central will fall 2 to 3 percent this year due to the trade war.

The global real estate services firm said the commercial real estate transaction volume only recorded HK$1.9 billion in the first quarter, compared with HK$71.9 billion last year.

Under the negative effects brought by the trade war, Chinese investments on commercial offices had been cooling down in the past half year after a two-to-three-year expansion, said John Siu Leung-fai, managing director of Cushman & Wakefield Hong Kong, he expects there will be a lower demand for grade A offices in Central this year.

He added that many foreign institutions have been moving their offices away from the core area to eastern Hong Kong Island or eastern Kowloon in order to reduce rent costs, while development of technology and public transportation have made it possible to work from home.

Siu predicted that Kai Tak will have better prospects with more multinational companies moving in, with new launches in 2022.

He predicts Kai Tak will catch up with Central by 2023.

Source: The Standard

http://www.thestandard.com.hk/section-n ... 0523&sid=2
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Re: HK - Commercial Properties & REITs

Postby winston » Fri Jul 05, 2019 7:43 am

Central faces tenant exodus in rents race

by Stella Zhai

Commercial property consultant Colliers International found in a survey that around 41 percent of current tenants in Central district, are considering relocating when their leases expire, with Kowloon East and Island East being popular options.

Colliers surveyed 363 tenants from various sectors and found that rents on Hong Kong Island has increased 14.3 percent on average over the past three years, compared to 4.7 percent and 1.4 percent on average in Kowloon and the New Territories.

Meanwhile, the Greater Bay Area Initiative should drive net office expansion demand in Hong Kong, with 20 percent of the companies planning to increase the size of local operations, said the consultant.

Savills, another real estate adviser, believes the retail leasing market is slowing in tandem with retail sales, with mall rents little changed in the second quarter, while rents for prime street shops recorded falls of 1.9 percent.

Food, pharmaceuticals and cosmetics, with 3.1 percent year-over-year growth, are outperforming other retail sectors with one percent year-on-year increase in May, said Savills.

The firm believes that the retail market will see a quiet second half with no big headline deals.

Retail sales over the January to May period continued their steady decline, falling by 1.8 percent from a year ago.

Overall, rents on prime shopping streets fell by 1.2 percent quarter on quarter, with Central dropping the most at 3.8 percent over the past quarter.

The new mega bridge and express rail links brought a steady stream of same-day mainland visitors, but spending power has been affected by the weakening yuan, said Savills, and the Sino-US trade tensions are having a negative impact.

Source: The Standard

http://www.thestandard.com.hk/section-n ... 0705&sid=2
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Re: HK - Commercial Properties & REITs

Postby winston » Wed Oct 02, 2019 7:29 am

Exodus from HK's Prime Office districts will continue

Source: SCMP

https://www.scmp.com/comment/opinion/ar ... otests-put
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Re: HK - Commercial Properties & REITs

Postby winston » Fri Dec 13, 2019 8:29 am

Retail rents at malls are slashed by up to 40pc

by Stella Zhai

Swire Properties (1972) was reported to have offered up to 40 percent rental cuts for tenants in Cityplaza while Wharf Real Estate Investment Company (1997) has reduced rentals costs by 15-20 percent for merchants in Harbour City, local media reported quoting sources.

Several shops in Cityplaza have been offered 30-40 percent rent cuts for six months, and the average rental cost for tenants in Cityplaza could be HK$72 per square foot per month following the cut, almost equal to those for shopping malls under The Link Real Estate Investment Trust (0823), the media outlet reported.

Swire Properties told The Standard that Pacific Place, Cityplaza and Citygate Outlets have offered temporary rental adjustments on a case-by-case basis but would not disclose their lease arrangements with tenants.

The company will take into consideration each individual tenant's business circumstances and their existing lease terms to provide suitable assistance.

Media reports also said merchants at Sun Hung Kai Properties' (0016) projects are free of rental costs for days when the mall closes and some tenants have been refunded deposits worth three months' rent.

Shops at K11 Musea, under New World Development (0017), meanwhile, have been offered 10-20 percent rent cuts for two to three months.

Source: The Standard

http://www.thestandard.com.hk/section-n ... 1213&sid=2
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