Rents in World’s Priciest Office Market Seen Falling in 2019 - EcoFinBiz Blog

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Rents in World’s Priciest Office Market Seen Falling in 2019

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(Bloomberg) -- Rents in the world’s costliest office market, Hong Kong, may fall for the first time in four years as an equities rout weighs on sentiment in the financial hub.

Grade-A office rents in Central and Admiralty will decline by about four percent in 2019, Colliers International Inc. said in a report. That compares with an estimated gain of 9 percent this year.

Declines in stocks this year have undermined confidence at the financial firms that rent more than half of the Grade-A office space in the central business district, the property brokerage said. Looming interest-rate increases and the U.S.-China trade war will also take a toll on sentiment, it said.

Office occupancy costs in Central stand at $307 per square foot, topping London’s West End and Beijing’s Finance Street, according to CBRE Group Inc.

Click here for a story on the slowdown in Hong Kong’s residential property market.

--With assistance from Matt Turner.

To contact the reporter on this story: Shawna Kwan in Hong Kong at wkwan35@bloomberg.net

To contact the editors responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net, Paul Panckhurst, Peter Vercoe

©2018 Bloomberg L.P.

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