Analysts predict dismal rent growth for commercial properties

No thanks to weak demand.

According to CBRE, Hong Kong Island witnessed just a small movement in average rent this quarter and this has been largely flat year-to-date. 

Rents in Core and Fringe Core areas continued to moderate as demand remains weak.

Here's more from CBRE:

In Causeway Bay, rental growth decelerated considerably from a 9.2% surge in the previous quarter to only a 0.5% increase in Q3 as the level of activity dropped.

The overall lack of demand has reduced decentralised rental growth to only 0.3% q-o-q, the lowest quarterly rate since Q1 2012. 

Weaknesses in the Core and Fringe Core areas are expected to remain for the remainder of the year and possibly carrying over to next year.

Vacancies are likely to remain high as demand is yet to recover, keeping the pressure on for some landlords. In other districts, lackluster overall demand could continue to hinder rental growth.