The impact of the regional crisis on Asian tenants has forced Tysan Holdings to cut rents at its office building in Tianjin. Group managing director Victor Fung Chiu-chak said rents at its majority owned Tianjin International Building had been reduced by about 8 per cent to US$32 per square metre per month, from $35 per square metre, when leasing agreements with Asian tenants were recently renewed. 'These Asian firms' budget for overseas operations has been reduced after the financial crisis last year,' he said. But the cut would not have significant impact on Tysan's rental earnings, he said. The company is also engaged in two joint-venture residential developments in Shanghai. Mr Fung said the mainland government's decision to cut housing subsidies would boost demand for local housing in coming years. 'We may also seek co-operation with other interested parties to expand our presence on the mainland after gaining enough experience in Shanghai,' he said. Tysan's 60 per cent owned residential building in Xujiahui would be released for pre-sale by the end of the year, he said. The building, providing a gross floor area of 331,811 square feet, would comprise 200 units measuring 1,000 sq ft each. Construction work on another residential project, in Changning, was expected to start in two months, Mr Fung said. In Hong Kong, the weak property market would not affect the company's core foundation piling business, he said. But the Government would stick to the supply of 50,000 public housing units a year as part of its long-term goal to increase home ownership to 70 per cent, he said. 'The work from the public sector can compensate for the shrinkage of work in the private sector,' he said. He expected private developers to speed up their developments once the market improved in the second half of the year.