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)