RICS Q3 2017 Hong Kong Commercial Property Monitor, High demand for office space from foreign enterprises, Price rents keep growing in next year



HONG KONG, CHINA - Media OutReach - 26 October 2017 - The Q3 2017 RICS (Royal Institution of Chartered Surveyors) Hong Kong Commercial Property Monitor showed that the Occupier Sentiment Index (OSI) and Investor Sentiment Index (ISI) experienced positive momentum, though gains in sentiment were marginal. The OSI rose to seven, one point higher than the previous quarter, and the ISI increased to twelve from eight in Q2.


The share of respondents reporting an increase in office space supply fell from 17 percent in Q2 to 11 percent in Q3. Headline foreign enquiries were flat for the second consecutive quarter, though foreign demand for office space remained robust. On retail segment, it shows a slow declining demand in both occupier market and investment market especially on prime location shops.  

 

Respondents revised one-year capital value forecasts lower in Q3 as compared with Hong Kong last year. Values for prime office space are expected to rise 5.4 percent over the next year, down from the 6.7 percent forecast in Q2. Values for prime retail space are expected to fall 1.3 percent over the same period, after respondents forecast a 0.5 percent pullback in Q2.

 

"The office space demand in investment market still benefits from mainland China enterprises expansion especially in prime office. This trend continues next year because of low office space supply in prime office" said Mr Frank Wong MRICS, RICS Hong Kong External Affairs and Public Concerns Committee Member.

 

The RICS Hong Kong Commercial Property Monitor is a quarterly sentiment index tracking trends in the commercial property market. It is a leading indicator for global investment and occupier markets. The full report is available at www.rics.org/economics.

 

About RICS


Confidence through professional standards

 

RICS promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure. Our name promises the consistent delivery of standards -- bringing confidence to the markets we serve.

 

We accredit 125,000 professionals and any individual or firm registered with RICS is subject to our quality assurance. Their expertise covers property, asset valuation, real estate management; the development of infrastructure; and the management of natural resources, such as mining, farms and woodland. From environmental assessments and building controls to negotiating land rights in an emerging economy; if our members are involved the same professional standards and ethics apply.

 

We believe that standards underpin effective markets. With up to seventy per cent of the world's wealth bound up in land and real estate, our sector is vital to economic development, helping to support stable, sustainable investment and growth around the globe.

 

With offices covering the major political and financial centres of the world, our market presence means we are ideally placed to influence policy and embed professional standards. We work at a cross-governmental level, delivering international standards that will support a safe and vibrant marketplace in land, real estate, construction and infrastructure, for the benefit of all.

 

We are proud of our reputation and work hard to protect it, so clients who work with an RICS professional can have confidence in the quality and ethics of the services they receive.

 



The issuer is solely responsible for the content of this announcement.
SOURCE:

RICS

CATEGORY:

Property

PUBLISHED ON:

26 Oct 2017

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