Hong Kong office sales in December worst since 2008, with only three deals recorded
- A total of 196 office transactions were recorded in 2018, a drop of 45 per cent on year, according to Midland IC&I
- December saw just three sales of office space, the lowest for any single month since 2008
Only three sales of office space were completed in Hong Kong in December, the lowest number in a decade and a sign of the spreading malaise in the city’s property market.
For the whole of last year, there were 196 sales of either single offices, whole floors or entire office buildings, 45 per cent less than in 2017, according to property firm Midland IC&I.
“Turnover of offices started to sink in the second half of the year as factors like the US-China trade war and a volatile stock market dampened investment sentiment,” said Eric Ong, chief operating officer and director of the commercial department at Midland, adding however that December was traditionally a quiet month due to the holiday period.
The slowdown in office space sales comes as residential property sales slump and prices fall after an over two year run of gains.
Analysts have warned homeowners to expect further falls in home prices – up to 25 per cent according to some views – as the trade war, volatile stock markets and rising interest rates keep buyers away.