A worker wearing a protective mask cleans a window in Hong Kong’s Central district on January 31. The significantly higher occupancy costs and the persistent lack of demand from mainland companies in the past year are vulnerabilities in Central’s office real estate market. Photo: Bloomberg A worker wearing a protective mask cleans a window in Hong Kong’s Central district on January 31. The significantly higher occupancy costs and the persistent lack of demand from mainland companies in the past year are vulnerabilities in Central’s office real estate market. Photo: Bloomberg
A worker wearing a protective mask cleans a window in Hong Kong’s Central district on January 31. The significantly higher occupancy costs and the persistent lack of demand from mainland companies in the past year are vulnerabilities in Central’s office real estate market. Photo: Bloomberg
Nicholas Spiro
Opinion

Opinion

The View by Nicholas Spiro

Coronavirus takes a heavy toll on the world’s most expensive office market – Hong Kong’s Central district

  • The disruption caused by Covid-19 is not only exacerbating the vulnerabilities of the city’s office market, but earlier sources of resilience are also being compromised
  • Forecasts of a 15-20 per cent decline in rents in Central this year now look optimistic. However, occupiers are also cautious about relocating to alternative business districts

A worker wearing a protective mask cleans a window in Hong Kong’s Central district on January 31. The significantly higher occupancy costs and the persistent lack of demand from mainland companies in the past year are vulnerabilities in Central’s office real estate market. Photo: Bloomberg A worker wearing a protective mask cleans a window in Hong Kong’s Central district on January 31. The significantly higher occupancy costs and the persistent lack of demand from mainland companies in the past year are vulnerabilities in Central’s office real estate market. Photo: Bloomberg
A worker wearing a protective mask cleans a window in Hong Kong’s Central district on January 31. The significantly higher occupancy costs and the persistent lack of demand from mainland companies in the past year are vulnerabilities in Central’s office real estate market. Photo: Bloomberg
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Nicholas Spiro

Nicholas Spiro

Nicholas Spiro is a partner at Lauressa Advisory, a specialist London-based real estate and macroeconomic advisory firm. He is an expert on advanced and emerging economies and a regular commentator on financial and macro-political developments.