-
Advertisement

Office rents unlikely to slacken before end of 1996

Reading Time:2 minutes
Why you can trust SCMP
SCMP Reporter

IF the setting up of the Government task force on property prices has hit the mass residential sector, none of the negative sentiment has slipped through to the office market.

''People are still coming in with what are seemingly bottomless amounts of funds,'' said Gareth Williams, executive director of Vigers.

''Capital prices are unlikely to ease off until vacancies appear, then we will see an adjustment, but that is a long way off in my opinion.

Advertisement

''Large residential and office properties will keep going up after this temporary blip.'' David Young, research manager of Colliers Jardine, said office rentals were definitely heading up. The effect would be most severe in Central where there was virtually no new supply until early 1996.

''By the end of the calendar year, I would expect another 15 to 20 per cent on Central rentals,'' Mr Young said.

Advertisement

Average office rents in Central at the end of last year were about $67.50 per square foot, according to Colliers Jardine. By the beginning of May, the figure had risen to $80 per sq ft and even higher, according to Mr Young. ''The only way they can go isup,'' he said.

Advertisement
Select Voice
Select Speed
1.00x