Unclear business prospects

Unclear business prospects

Office rentals can best reflect the business environment. Under the Sino-US trade war, the organization is worried about the business prospects. It is now temporarily expanding or first reducing the floor space, resulting in a quiet rental activity.

The commercial rental market has been very prosperous in the past two years. Hong Kong Island and Kowloon have been driven by commercial activities and the commercial rental market is active. According to the information, the vacancy rate of commercial buildings in Hong Kong is only about 4%, while the vacancy rate in Central is 1.5% lower, reflecting the positive economy and frequent commercial activities.

However, since the trade war broke out between China and the United States six months ago, the two sides are still negotiating today, and the trade war involves different tariffs on goods. For many organizations, the business prospects are affected by uncertainties and it is inevitable to turn conservative.

Continued trade war negotiations

The outbreak of the Sino-US trade war has more or less affected the institutional expansion. As the negotiations continued, it was always difficult to determine the results. Many organizations were worried about the prospects. Therefore, the original expansion plan was temporarily suspended. As a result, the recent rental activities have turned quietly.

Hong Kong Island and Kowloon will also be affected by the trade war atmosphere. In the past two years, Chinese financial institutions have launched a large-scale attack on Hong Kong and leased the roof of Jiaxia Building in Central District. Under the trade war, mainland funds are difficult to mobilize to come to Hong Kong. Affected.

The Kowloon area is more directly affected by the trade war. Because many trade and shipping companies’ offices are mostly in Kowloon, the recent market leasing has also reduced the impact of the Sino-US trade war on the future business deployment. I believe that the trade war has not subsided, the organization is still conservative on the prospects and continues to have a negative impact on the commercial rental market.