INTERNATIONAL - Rents in the world’s costliest office market, Hong Kong, may fall for the first time in four years as an equities rout weighs on sentiment in the financial hub.
Grade-A office rents in Central and Admiralty will decline by about four percent in 2019, Colliers International Inc. said in a report. That compares with an estimated gain of 9 percent this year.
Declines in stocks this year have undermined confidence at the financial firms that rent more than half of the Grade-A office space in the central business district, the property brokerage said. Looming interest-rate increases and the U.S.-China trade war will also take a toll on sentiment, it said.
Office occupancy costs in Central stand at $307 per square foot, topping London’s West End and Beijing’s Finance Street, according to CBRE Group Inc.