Rentals unaffected by market turmoil

PUBLISHED : Wednesday, 05 November, 1997, 12:00am
UPDATED : Wednesday, 05 November, 1997, 12:00am

Leasing activity was robust last month, but grade A office rents around Hong Kong Island did not budge, according to the latest monthly Vigers/Bridge Hong Kong Property Index .

Vigers manager of corporate property services Roger Weir said it was too early to estimate the impact of the stock market crisis upon leasing activity.

In Central, net effective rents remained unchanged from September's level of $67.70 per square foot and should remain stable for the next three months.

Rents are up almost 7.5 per cent on the year, according to the Vigers/Bridge Hong Kong Property Index .

In Wan Chai, net rents were also unchanged from the previous month at HK$43.40 per square foot, an increase year on year of 8.50 per cent, according to the Index.

It was much the same story in Causeway Bay where rents have sat at HK$35.40 net per square foot.

Mr Weir said that while both Wan Chai and Causeway Bay did not have a lot of new supply coming on to the market, rents would be capped by new construction in peripheral areas.

Rents in Causeway Bay could fall as landlords tried to ward off competition, he said.