REFILE-Hong Kong office rents seen rising further in Q4-DTZ

Tue Oct 5, 2010 6:24am EDT

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 HONG KONG, Oct 5 (Reuters) - Hong Kong's office rents will
likely rise another 5 percent in the fourth quarter as
vacancies fall further, with companies expanding on an
improving economy, global real estate services firm DTZ DTZ.L
said on Tuesday.
 Hong Kong, a major financial hub in Asia, has seen office
rents rising by 20 percent since the beginning of this year to
hit HK$53 ($7) per sq ft per month in the third quarter, the
London-based firm said.
 "The economic situation in Hong Kong seems to be quite
stable and companies now are looking towards expansion of
space, more so than 18 months ago when there is a lot more
contraction, so overall rents will move up," Mark Price, DTZ's
head of business space for greater China, told a news
conference.
 Hong Kong's overall office vacancy will likely fall to 4.2
percent in the fourth quarter from 4.9 percent in the previous
quarter, after factoring in a net absorption of around 600,000
sq ft in the final three months of 2010, DTZ executives said.
 The office vacancy rate in Hong Kong, whose skyline is
dotted by buildings such as the IFC and the Bank of China, has
been falling since the first quarter of this year after hitting
8.2 percent in the final three months of 2009, DTZ said.
 Hong Kong's economy, which relies on trade and financial
services for growth, has been recovering since the fourth
quarter of 2009, and the momentum extended in the first quarter
this year when GDP rose a revised 8.0 percent from a year
earlier.
 In August, the Hong Kong government revised up its
full-year GDP growth forecast to 5-6 percent in 2010, from the
previous forecast of 4-5 percent. [ID:nTOE64D05O]
[ID:nHKV002393]
 ($ = HK$7.8)
 (Reporting by Lee Chyen Yee and Joy Leung; Editing by Lincoln
Feast)
 (See www.reutersrealestate.com for Reuters' global service for
real estate professionals)



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