A research produced by
This quarter, about 891,100 sq ft of new office space was completed, bringing total grade A office stock to reach 78,994,024 sq ft. Demand was mainly supported by the technology, media and telecommunications (TMT) and retail sectors. The overall rent decreased by 1.8% quarter-on-quarter (q-o-q) to be recorded at HK$59.7 (US$7.65) per sq ft per month due to rising vacancy and the persisting cautiousness of business sentiment.
Tier 1 high street shops in prime retail districts remain popular amongst global brand names and jewellery retailers. Performance is divided amongst tier 2 and 3 street shops as there is strong expectation gap between landlords and tenants, which largely turn on the issue of the degree to which soaring rents from tier 1 high street shops diffuse to tier 2 and 3 premises.
The volume of primary residential sales jumped this quarter as developers drove sales by offering incentives and rebates to prospective buyers. The emergence of competition between primary and secondary market led to drop in the overall residential price index by 2.6% q-o-q and 2.0% year-on-year (y-o-y).
Total number of deals exceeding HK$100mn remained at 30 this quarter but total consideration increased by 97.9% q-o-q to reach HK$15.38bn (US$1.97bn). The luxury residential sector rebounded significantly this quarter and hotel and site transactions continued to soar as investors see the opportunities arise from continued strong growth in tourist visitorship.
Source :DTZ (Groupe UGL)
