Swire Properties, the biggest grade-A office landlord in Island East, expects a substantial rental decline across its portfolio this year amid fierce competition for tenants, especially from Cyberport.
Managing director Keith Kerr said he expected office rentals to drop further as landlords made concessions to maintain occupancy rates.
He said occupancy rates had slid to 91 per cent in Swire Properties' office portfolio in Island East while the average monthly effective rent remained at HK$20 per square foot for lettable area.
The occupancy rate of its Pacific Place in Admiralty was slightly below 90 per cent and the average rent was about HK$35 per square foot, he said.
'The market is characterised by flatness at the moment,' he said.
He expected office rentals in Central would face increased pressure given the large amount of new supply coming on stream and contraction in the finance sector.
