HK - Commercial Properties & REITs

[winston]

Cushman & Wakefield expects rent for office space to climb 10% in 1H2012 on mkt for office space in non-core districts seeing recovery

Cushman & Wakefield reported on the trends in the markets for office space and retail leasing.

In the past three months, 7,700 square feet of office space were absorbed, reflecting market situation improved.

Fok Chor Ping (霍佐平), senior director for commerce division at Cushman & Wakefield, expects rent for office space beyond central district to advance 10% in the second half of this year.

Fok also predicts retailers will continue to fight for retail shops located at prime areas and rent for space in commercial districts to climb 10% in the second half of 2012.

Source: AAStocks Financial News

[winston]

Mall operator takes bearish view

A slowdown in inbound tourism and the prevailing poor consumption sentiment in Hong Kong will continue to pressure the local sector, Sun Hung Kai Real Estate Agency warned yesterday.

http://www.thestandard.com.hk/news_deta ... 20727&fc=8

[winston]

not vested

DJ MARKET TALK: Revisit HK REITs On Price Pullbacks - Daiwa

0922 [Dow Jones] Daiwa says Hong Kong-listed REITs are evolving from having been a rather neglected sector in the past, into at least a niche segment in the HK property space, with progress on asset enhancement initiatives (AEI) and management of property assets being key to the sector's DPU growth prospects and its appeal as an investment class.

Still, Daiwa says as the H-REITs outperformed in 2011 and have achieved strong unit price performances in 2012 year-to-date, this could lead to consolidation pressure on their unit prices, especially as and when market sentiment starts to shift to higher-beta names.

"As such, we retain our Neutral sector stance at this stage but would advise revisiting the H-REITs on unit price pullbacks given the solid and sustainable DPU growth prospects we believe they offer."

Source: Dow Jones & Company, Inc.

[winston]

Lower rates, cash influx make shops hot property

Shops are expected to change hands briskly in coming months as an influx of hot money and lower borrowing costs for non-residential property spur investment interest, agents say.

Source: SCMP

[winston]

Fears of HK commercial property bubble

Hong Kong's clampdown on speculation in residential property, is fuelling fears that the hot money flowing into the region, will further inflate a bubble in the city's commercial property market.

Source: Financial Times

[winston]

not vested

Financial Secretary John Tsang said is his personal blog that he has noticed huge price increases in commercial properties and the authorities would consider measures to cool this sector if economic stability is threatened.


Source: SING TAO DAILY

[winston]

Retail rents jump but face slowdown by Karen Chiu

Retail rents in Hong Kong have risen 10 percent so far this year, according to Jones Lang LaSalle, which expects a further 5 percent jump in the fourth quarter due to a shortage of supply.

But next year rents are likely to rise at a slower pace - by 5-10 percent - due to global economic uncertainties, said Marcos Chan Kam- ping, head of Greater Pearl River Delta research at the international property consultants.

Between 2007 and 2011, local retail sales grew 13.1 percent, but total retail space rose a mere 3.9 percent.

Champion REIT (2778) said its flagship mall, Langham Place, charges an average rent of HK$180 per square foot, with the highest rent fixed at HK$900 psf.

Over 23 percent of tenants have renewed their contracts this year, with rents rising by more than 70 percent, said Vivian Leung Wai-man, general manager at the Mong Kok mall.

Rent of a food and beverage tenant jumped four times, she said.

Separately, the group expects a 15 percent jump in sales turnover during Christmas with the daily customer flow tipped at 350,000 to 400,000. About 25 to 30 percent are expected to be mainlanders.

Also, Hopewell Holdings (0054) said the average rent at its five-story mall - Panda Place in Tsuen Wan - will be about HK$30 to HK$100 psf after renovation, when the facility will consist of 60 stores.


http://www.thestandard.com.hk/news_deta ... 21114&fc=4

[winston]

not vested

Hong Kong’s Central Rents to Extend Drop as Banks Cut Costs By Kelvin Wong

Hong Kong’s Central district office rental, the most expensive globally, is set to extend its biggest decline since the global credit crisis, according to the world’s two biggest realtors.

Leasing costs in the district where Goldman Sachs Group Inc. and HSBC Holdings Plc have offices will likely be little changed in 2013, Rhodri James, executive director for office services at CBRE Group Inc., (CBG) said. Jones Lang LaSalle Inc. (JLL) sees rents dropping “slightly” in the first half before picking up in the second, Ben Dickinson, head of Hong Kong markets, said.

http://www.bloomberg.com/news/2013-01-1 ... costs.html

[winston]

Office rents were flat or rose modestly in most districts in second ...

Office rents in most areas of Hong Kong were flat or rose modestly in the second quarter this year, according to property consultants.

Source: South China Morning Post

http://www.scmp.com/property/hong-kong- ... -districts

[winston]

Office rents in Hong Kong's Central could fall by 20pc over 18 months

Pessimism not shared by all analysts given rents are 23pc off their last peak, but exodus to cheaper districts has left a million square feet unlet.


http://www.scmp.com/property/hong-kong- ... pc-over-18