Hong Kong's grade-A office rents continued to contract, albeit at a slower rate of 3.3 percent quarter-on-quarter, said real estate services company, CBRE.
CBRE predicts rents to drop by 5 percent to 10 percent this year.
Greater Central rents fell by 3.2 percent q-o-q, following a 6 percent quarterly drop in the last quarter of 2020.
Greater Tsim Sha Tsui posted the largest rental decline of 5.5 percent q-o-q amid a 1.8 percentage point increase in vacancy, also the largest increase of any district.
“The Hong Kong economy is set to encounter a meaningful rebound in 2021, amid a low base of comparison. Demand for commercial properties is expected to gradually catch up, but high space availability will prevent rents from rebounding in the office and retail sectors,” says Marcos Chan, executive director and head of Research at CBRE Hong Kong.