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Stock impact report

Leasing momentum, lower interest rates unlikely to rescue Hong Kong's distressed office landlords [Yahoo! Finance]

HSBC Holdings, plc. (HSBC) 
US:NYSE Investor Relations: hsbc.com/investor-relations
Company Research Source: Yahoo! Finance
From their peak in October 2018, prices of prime office space in the city's main business zones of Sheung Wan/Central, Wan Chai/Causeway Bay and Tsim Sha Tsui declined by more than 46 per cent as of November, according to the latest data from the Rating and Valuation Department. Overall rents, meanwhile, across the city's premium office space segment are estimated to have fallen 8.6 per cent this year, according to real estate firm JLL. The property consultancy forecasts office rents to drop by as much as 10 per cent in 2025. Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge , our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. "A few years ago, rental transactions would go for 50,000 sq ft, but now leasing transactions are just for 18,000 sq ft, so rents could not fund the loans," said Oscar Chan, head of capital markets at JLL in Hong K Show less Read more
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