Hong Kong’s prime street shops are likely to see higher vacancy rates after the Chinese New Year holidays, potentially leading to a 5 to 10 percent drop in rents in the first half of 2016, according to DTZ.
Prime offices in Central, however, are likely to witness 5 to 8 percent rise in rents, the property consultancy said.
Kevin Lam, head of business space at DTZ Hong Kong, said vacancy rates of prime street stores in the city’s four major districts, namely Causeway Bay, Tsim Sha Tsui, Central and Mongkok, are currently in the 2.4 percent to 6.8 percent range.
Many short-term tenants will be moving out after the Chinese New Year, the Hong Kong Economic Journal quoted Lam as saying.
However, demand for prime office space will remain robust.
John Siu, DTZ’s managing director for Hong Kong, said more Chinese institutions moved into Grade A offices last year, jacking up the average rent to HK$110 per square foot, or 15 percent on a year-on-year basis.
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