Affected by the uncertain global economic outlook and social instability, the rent of Jiaxia is also under pressure
According to a foreign-funded research report, the overall rent of Jiaxia City continued to decline last month, with the most rapid decline in Central District, down 1.7% month-on-month
According to Jones Lang LaSalle’s data, the overall rent of the company’s market continued to decline last month, down 1.1% month-on-month. Due to the unclear market conditions in the near future, the owners have reduced rents in order to retain tenants. The average rent of office buildings in Central is about $125, down by about 1.7%, which is the highest among the districts. The decline has also spread to areas outside the traditional core office market in Hong Kong. The rent in Kowloon East fell by 0.4% month-on-month.
Central rent for 125 yuan
In addition, the bank also pointed out that the decline in office rents was mainly due to the weakening of leasing demand, which led to a significant decrease in leasing transactions. Among them, the rental of Central Leasing fell by 47% in September, while the leasing activity was mainly to renew the main, which reflected the owners. The attitude is more relaxed.
Bao Yali, head of the commercial department of Jones Lang LaSalle, said that looking at the overall leasing market, the new leasing transaction fell 56% month-on-month, resulting in a monthly absorption of 68,800 square meters. As in the previous months, leasing demand was mainly concentrated on Non-core area. Tenants in Central District who intend to control costs will continue to move out of the core area. In addition, Bao Yali also pointed out that CLP reportedly leased 11,400 square feet of floor space at the China Life Insurance Center in Hung Hom for expansion demand.
The negative absorption during the month was 68,800
Zhong Chu, a senior director of the Jones Lang LaSalle Research Department, said that due to the trade war and the weakening of the retail industry, warehouse tenants were temporarily suspended. Although there were not many leases in September, Kwai Chung recorded two transactions involving a total of 33,000 square feet of the Asian Container Logistics Centre.