Investor interest in grade-B office space is rising, with more than HK$1 billion worth of premises traded this month.
The latest transactions were the sales of Victoria Heights Building and Energy Plaza in Tsim Sha Tsui.
Analysts said buyers mainly were long-term investors attracted by the yields of more than 6 per cent for grade-B offices.
The sharply increased volume of transactions within a short time showed investors were convinced prices in the sector were close to the bottom, they said.
'En-bloc, grade-B offices usually have a guaranteed rental yield of 6 per cent to 7 per cent, which is better than grade-A offices,' said Antonio Wu, director of Colliers Jardine's investment section.
He said traditional investors might choose new premises, but it would take them a long time to lease out the units.
