Office rents are set to test decade lows in most districts by the end of this year in anticipation of further declines, according to FPDSavills senior research director Simon Smith.
The consultant's latest indices showed rental declines across all major business districts in the third quarter. The steepest decline was in Central, where rents fell 10.3 per cent during the three months to September, Mr Smith said.
The leasing market remained in the doldrums as a further round of staff cuts was expected from the financial services sector. He predicted further downward pressure on rents in the central business district (CBD).
'The CBD is now trading below its historic premium over other districts except Wan Chai/
Causeway Bay, where rents have languished over recent months,' he said.
While rents in Central, Tsim Sha Tsui and Island East were on a par with those of three years ago, those in Wan Chai and Causeway Bay were trading at least 13 per cent below 1999 levels, he said.
