Despite a 42 per cent slide over the past six years, prime office rents in Hong Kong remained the most expensive in the region.
Tenants in Asia-Pacific’s commercial property market are likely to seek flexible office spaces and sign short-term leases, avoiding long-term commitments while waiting for the full impact of the US-China trade war to play out, according to Knight Frank.
The situation has forced office landlords to focus on retaining their existing customers at the expense of softer rents, the consultancy said. Rents on prime office space, which fell at a faster pace last quarter, may come under further pressure as the firm forecast region-wide supply to increase by 5.
