Office space slump will serve Hong Kong developers

Sun Hung Kai Properties

07/07/2021 03:46

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Jennifer Hughes
    HONG KONG, July 7 (Reuters Breakingviews) - Record vacancies
are depressing rents even as the city’s property giants lob $7
bln bids for a prime plot that will only add supply. As
businesses weigh the merits of proximity to Beijing, the world’s
priciest office market will gain from offering tenants some
pricing power. 
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    CONTEXT NEWS
    - Bids closed on June 18 for a waterfront site in the city’s
Central business district. The site, which could yield up to
1.61 million square foot of gross floor area for retail and
commercial use, is estimated to have attracted offers as high as
HK$55 billion ($7.1 billon). 
    - Central Harbourfront Site 3 is the first for which the
government adopted a two-envelope approach, promising to weight
design as highly as price.     
    - For previous columns by the author, Reuters customers can
click on  HUGHES/ 
 

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 (Editing by Pete Sweeney and Katrina Hamlin)
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