Hong Kong office rents and rental values expected to decline further amid uncertainties about global, Chinese economies, analysts say
- Vacancy levels rose in the first half to 15.7 per cent and will continue to rise as new developments are completed, and rents are expected to edge down by another 1 to 2 per cent, CBRE analyst says
- Hong Kong office rents could continue to fall in the second half, as some companies might further downsize offices by adopting hot-desk arrangements: Bloomberg Intelligence
While senior executives want staff to return to the office – and the Asia-Pacific region continues to lead the United States and Europe in this aspect – flexible working as an option is increasingly popular in Hong Kong, according to CBRE.
“Office leasing momentum has remained slow in recent months on the back of prolonged uncertainties in the global economic outlook,” said Marcos Chan, head of research at CBRE Hong Kong.
Vacancy levels rose in the first half of 2023 to 15.7 per cent and will continue to rise as new developments are completed and enter the market, said Chan, adding that rents are expected to edge down by another 1 to 2 per cent in the second half.
The decline in office rents is reflected in rateable values, the annual rental value estimated by the Rating and Valuation Department. Twenty-four out of 33 benchmark office buildings, or 72.7 per cent, last year saw their rateable values fall below 2013 levels, according to Centaline Property Agency.
