Jones Lang LaSalle: rent next year rose 5% Kowloon pressure
Hong Kong Wen Wei Po (Reporter Su Hongqiang) Shenzhen-Hong Kong Stock Connect program will open this week, although the first two days of the stock market, no big plus, but the office market is just around the corner. Jones Lang LaSalle published reports that yesterday, Shenzhen-Hong Kong Stock Connect program may not be good through the early years of Shanghai and Hong Kong, but will continue to drive demand for office space the core area, is expected to Central funds will continue to be first choice for many mainland settled, would rent again next year rose 5%.
Jones Lang LaSalle yesterday issued a "Hong Kong Property Market Review Report", pointed out this year, mainly from demand for office space in Central Mainland financial business expansion, as well as the newly established Office of demand, accounting for 44% of newly leased floor this year, compared with 2015, accounting for 35% ratio of more. Central Grade A office rents rose in the first 11 months of this year by 9.2% to 111.9 HKD per sq ft from the 2008 pre-crisis peak of 116 HKD lower by only 4%; the other hand, continued to increase the supply of rental and Tsim Sha Tsui East, Kowloon, this year over the same period were down 0.5% and 1.5%
Chinese Central wins last year lease
Jones Lang LaSalle Leasing Department director Pang Dingqin expects Central in 2017 will be the only rental growth recorded in the commercial area, an increase of up to 5% forecast in other areas are under pressure, which in order to vacant floor fell more Kowloon East greater rate of up to 10-15%.
Retail shops on the street, along with the reduction of mainland visitors to Hong Kong, and mainland devaluation anti-corruption policy, the local press as a whole recorded a decline in retail sales, dragged down the street, the rental market. Jones Lang LaSalle refers to the current rental market demand mainly from the retail price of consumer goods, lifestyle retailers and restaurants. Brand new arrivals and catering group still intends to expand to Hong Kong. Looking to the future, the demand for this type of retail market still dominant retailers and foodservice operators.
Jones Lang LaSalle head of Chen Yaofeng refers Store, street stalls rent per square foot this year fell 18.4 percent to 462 yuan, major shopping centers rents softened since the second half of the year fell 1%. However, Chen believes that core street shop rents over the past two years, tired and fell 36.8% after the second half of next year is expected to bottom out in mid-priced brands and dining expansion, expected core street stalls and major shopping centers next year fell to rent a further 5 %.
Core street shop rents have not bottomed out
In addition, tenants seeking to benefit from the warehouse storage space, and a car is accessible warehouse tight supply, flatted factory rents rose 2.7 per cent to 12.3 per sq ft, while warehouse rents rose by 3.5% to per ft 13.2 yuan. As for the Trade and Industry Building, facing activation, competitive projects and renovation of industrial buildings Grade A office space, Ft rent fell 1.7 percent to 17.4 yuan.
Jones Lang LaSalle Industry Ministry director Liu Yijiang means, even if living industrial buildings plan expired in March, has been granted partial activation of the industrial building project will put on the market in the next three years, the competition remains; plus exemption from the exemption of the data center book cost incentives are still valid, expect this policy will continue to dominate the market.
As for the price trend of the grid investment properties, Jones Lang LaSalle head of research Maan Ping expected, next year is expected to office and warehouse prices rose 5% decline expected retail price narrowed to less than 10%.