CBRE

Vacancy edged down to 1.4% in Q2 2022.

Limited inspection activity caused the decline in leasing demand.

Amongst core districts, Tsim Sha Tsui had the biggest vacancy rate.   High-street shop vacancy rose 1.3 percentage points from Q122 to hit 16.5% in Q2 22, data from CBRE showed.   The increase in vacancy was likely due to some landlords, who are under limited financial pressure, opting to leave units vacant rather than renting them out.   This practice was most evident in Tsim Sha Tsui and Mong Kok where vacancy rates were the highest, at 23.2% and 18.9%, respectively.   Whilst vacancy rose during the quarter, rents remained flat. According to CBRE, rents were unchanged from Q122 because “cash-rich landlords with strong holding power prevented some units from transacting at lower rents this quarter.”   In addition to rents being unchanged, leasing volume also increased in Q2, signalling an improvement in the retail property sector.   “Improved retailer sentiment underpinned an increase in transaction volume, although many deals signed this quarter involved short-term leases,” CBRE commented.

The original closing date was 7 July.   The tender for The Remaining Portion of Inland Lot No. 8590 and The Remaining Portion of Inland Lot No. 8723 at Hoi Yu Street, Quarry Bay, was moved to noon of 25 July upon request of potential buyers.   Originally, the tender was to close on 7 July.   “We receive requests from most of the potential buyers demanding extra time to study the property thoroughly and make informed internal discussion,” CBRE, the property’s marketing agent, said.   CBRE said the property received interest from developers from Hong Kong and China, real estate investment trusts (REITs), institutional funds, family offices, and private investors.   The site for sale is expected to be developed into a large-scale mixed-use complex for commercial, leisure and tourism use.

The property sale will be via public tender until 29 July at 12 noon.

Investors are converting hotel assets into co-living spaces.

The site is on sale until 7 July at 12 noon.

The fifth wave has significantly slowed down the property market in Q122.

Hong Kong was second in Asian outbound real estate investment rebounds in 2021.

The proposed law will pose potential cash flow issues.

Hong Kong dropped out of the list in 2021.

Thanks to the strengthened demand in the retail and industrial property sectors, analysts say.

But the potential spread of the highly transmissible Omicron variant poses uncertainty to the market.

This marks the country’s longest local market down cycle in history.

Rents rose 1.2% quarter-on-quarter in the second quarter of the year.

CBRE reported office and retail sectors are likely to be the biggest gainers.