Hong Kong’s Grade A office rents are expected to decrease by 5-10% in 2025, according to property consultancy JLL. This decline is attributed to weak economic conditions and a significant increase in supply.
JLL’s report highlights a polarized retail market, where prime locations on top-tier streets are experiencing robust demand, while lower-tier streets struggle to attract tenants, even with negotiable rents.
Retail rents for both high street shops and prime shopping centers are forecasted to drop by 0-5% in 2025.
In the residential sector, JLL anticipates a 5% decrease in home prices next year, driven by ongoing oversupply and elevated financial costs for developers.
The report also notes that heightened macroeconomic uncertainties have prompted cautious behavior among investors, leading to a decline in investment volumes.
Despite these challenges, a rise in distressed property listings is expected, presenting opportunities for savvy buyers.
JLL also indicated that reducing land parcel sizes, minimizing supplementary conditions, and revising the Urban Renewal Authority’s Home Purchase Allowance assessment could boost urban revitalization efforts and attract more developers.
Keywords: #Centsationalmarket #HKGradeAOffices #RealEstate #InvestmentOpportunities #UrbanRevitalization #OfficeRents #MarketTrends
