Central commercial buildings and then break the roof and shop rent divergence
DTZ announced the third quarter office and shop rental data, the average monthly increase of 0.3% per foot on the previous quarter, to 80.5 yuan per foot, of which the Central Grade A office rents hit a record high, from the previous quarter of 126 yuan per foot , Rose to 126.6 yuan in the third quarter, up 0.5% quarterly.
The bank pointed out that the next five years in Kowloon have more office buildings have been completed, is expected to affect the rental and distribution of tourists. Mr Tung Leung-hong, Managing Director of Hong Kong, said that the rents in the traditional core areas such as Central, Wan Chai and Causeway Bay increased by 3.9% to 5.4%, while the South of Hong Kong had a 7% increase and the supply of Kowloon East increased. % Decline.
Annual decline or up to 15%
As a result of the completion of 820 sq ft of new buildings in the next five years, an increase of 1.2 million sql per annum over the past 10 years is expected to result in an oversupply situation. Rent increases will slow and the new supply will be Will be under pressure and then down. As for the next five years the supply of traditional core area is very small, the rent is expected to stabilize. Xiao Lianghui expects the core area tenants to move to the outside world, is the general direction of the next few years.
As for the shopmaking, Central rents continue to run counter to the office. Shing Ying-weng, executive director of DTZ Debenham Tie Leung, pointed out that rents in the Central area fell by 3.5% quarterly due to the increase in vacancy rate. It is expected to fall by 10% to 15% for the whole year. The rent of restaurants is also the same. However, Lin Yingwei pointed out that this year there are many Chinese retailers stationed in the Hong Kong market, including fashion, food, department stores, watches and clocks, is expected to bring support for the core area of rent.