Affected by rising interest rates and new supply, industry analysts believe that the vacancy rate of Hong Kong office buildings may hit a new high next year.
According to Bloomberg, Patrick Wong, an analyst at Bloomberg Industry Research, pointed out in a research report that although Hong Kong is relaxing the restrictions on epidemic prevention, the vacancy rate of Hong Kong -level office buildings in Hong Kong may hit a record high before the end of next year next year.It reached 15.4%, more than 13.1%in September 2003.
The rise in interest rates and the strong exchange rate of the Hong Kong dollar will limit the budget of the enterprise to expand the office. The new supply of office space may intensify the competition with existing office buildings therefore suppressing lease recovery.
Analysts predict that the newly built net floor area of Hong Kong may reach 4.3 million square feet this year, the largest in more than ten years, and the area of 3.3 million square feet is expected to be completed in 2023.
