Hong Kong property

Property Digest, December 12, 2012

PUBLISHED : Wednesday, 12 December, 2012, 12:00am
UPDATED : Wednesday, 12 December, 2012, 3:23am

HK office rents drop 9pc on slack demand

Overall monthly office rents in Hong Kong dropped by 9 per cent year on year to HK$61 per square foot in the fourth quarter, reflecting slow demand, property consultant DTZ says. But stable rent levels in most districts helped offset plunging prices in Central and Admiralty. "Lower vacancy rates in other districts and a general tight supply of office space in Hong Kong prevented a drastic drop," said Mark Price, DTZ's head of business space for North Asia. The outlook for 2013 depends on whether Western economies can get back on track. Moreover, as China's political and economic landscape becomes more stable, the Hong Kong office market can look to new business demand that will support the local take-up amid tight office supply in the next two years, says Alva To, DTZ's managing director for Hong Kong. Peggy Sito


South China Land to sell Central skyscraper

South China Land will sell its office building in Central for HK$7 billion as the firm shifts to developing shopping malls on the mainland, executive director Christina Cheung Choi-ngor said yesterday. Upon the sale, South China expects to fetch HK$2.1 billion from its 30 per cent interest in the 41-floor The Centrium tower, a joint venture with Sino Land. Yvonne Liu