OFFICE rentals will be driven higher by rising demand in the next 12 months, according to a property analyst.
While rents had risen in the 12 months to June this year, demand remained stronger than supply, Alan Dalgleish, research manager at First Pacific Davies, said.
This would keep rents moving upwards until 1996, he said.
''Into 1996, rents will consolidate overall because we will start to get new office supply in Central, Wan Chai, North Point and elsewhere,'' he said.
The trend towards decentralisation would continue during the next 12 months, with areas such as Quarry Bay continuing to experience an influx of service companies moving into new office buildings, including Dorset House which was expected to be completed by December this year.
''In particular the I/O (industrial/office) buildings market should be watched over the next 12 months,'' he said.