Shibang commercial property rental growth narrowed

CB Richard Ellis believes that rental rates for commercial properties are generally higher this year, but their rental and property prices have been on a high and narrowing basis. Rents for Central commercial buildings are expected to rise by 5%. Another consideration is that the price of one-storey office tower rises 10%.

Central rents rose 5%

Chen Kam-ping, director of research at CB Richard Ellis in Hong Kong, South China and Taiwan, pointed out that overall market conditions were booming last year and there are still positive factors for the property market this year, including the wealth effect in the stock market in recent months and the completion of infrastructure projects.

However, he believes that due to the record high of property prices and rents of commercial properties in the past and the possibility of a rate hike this year, I believe the rental increase of A-Sha will narrow and the general industrial and commercial properties are expected to grow steadily this year. Among them, the rents in commercial buildings in the core area are better than those in the Central District because Chinese-funded agencies still increase their leased floor space while the supply is limited and the rents in Central are expected to rise by about 5%. This year, the supply of non-core Rudong Kowloon commercial buildings is increased and the gap with the Central District rents is even more Large, so that institutions gradually consider moving out of Central, he expected the overall commercial rents stable development during the year.

As regards the rents of shops, Lian Zhihao, the Hong Kong consultant and retail executive director of trading services, believes that the improvement in street shops has improved, and the decline in rent is expected to be completed by the end of the year.

In the investment market, Wang Zhenkang, executive director of the bank’s Hong Kong capital markets department, believes that there is still plenty of money in the market. Due to the sought after Chinese-funded enterprises, property prices are expected to rise 10% over the year and outperform the market.