Hong Kong Retail Rents to Fall Another 15% to 20%, Says CBRE’s Chan

The video discusses the slowdown in the commercial property market since 2018, exacerbated by social unrest in 2019. The Wuhan virus is expected to impact the market indirectly, affecting retail and economic performance. Retail rents have decreased significantly, with further declines expected. Landlords, especially cash-rich individuals, are often inflexible in negotiations, leading to vacancies. Office rents in Hong Kong show a trend of tenants moving to more affordable areas, with rents decreasing in central areas but increasing in decentralized locations.

What major event in 2019 contributed to the slowdown of the commercial property market?

• The global financial crisis

• Social unrest

• Natural disasters

• Technological advancements

How much did retail rents decrease in the previous year?

• 10%

• 15%

• 25%

• 20%

Why are some landlords unwilling to lower rents despite vacancies?

• They are bound by legal contracts

• They expect a market boom soon

• They are cash-rich and not in need of immediate income

• They have long-term tenants

Which area in Hong Kong has seen an increase in office rents?

• Quarry Bay

• Central CBD

• Kowloon

• Tsim Sha Tsui

What is the expected trend for office rents in decentralized areas?

• They will fluctuate

• They will remain stable

• They will increase

• They will decrease