Real estate market
Written by: Xu Shihao
2020-03-09 18:11
Last updated: 2020-03-09 18:11"New Crown Pneumonia" (Wuhan pneumonia) has gradually evolved into a global epidemic. The market is worried about the economic recession and the office market has been hit hard. According to the Midland Business Report, the sales price and rent of the benchmark Grade A commercial building fell by 1.2% and 1.8% month-on-month in the previous month, both of which fell for the eighth consecutive month.
The report states that in this wave of declines, rents and selling prices in the Upper Ring Road and Admiralty District had the worst performance. The latest rents and selling prices have fallen back to the level of 3 years ago, when the King of Mermaid Road in Central was sold. Hong Kong Island also underperformed Kowloon, with Admiralty and Sheung Wan the worst performers.
The report pointed out that the price of Admiralty Mansion last month fell by 5.3% month-on-month, the worst performance among districts. The latest average price per square foot was only RMB 30,869, which was about 20% lower than the high of RMB 38,803 at the end of 2018. As for the price per square foot of Sheung Wan Jiasha, although it has not changed from month to month, the latest price per square foot is only 27,381 yuan, which has also returned to the level of mid-2017, which means that the owners who purchased the property in the above two core areas in the past 2 to 3 years may be There is a chance that the book has been lost.
Admiralty rents fell 2.6%
In terms of leasing, Admiralty and Sheung Wan were also the hardest hit areas. Last month, the rent of A building in Shanghai dropped by 2.6% and 1.4% respectively. Among them, a unit of Bank of America was leased at about 42 yuan per square foot, marking a ten-year lease on the building. A new record low and a 33% drop from the unit's old rent.
Weng Hongxiang, Operations Director and Director of the Commercial Department of Midland Commercial and Commercial Department pointed out that new crown pneumonia has gradually spread to all parts of the world. Recently, Italy has taken measures to close the city. Although this may reduce the spread of the epidemic, it will also exacerbate the country's economic crisis and cause the market. Worries about the recession in Italy and even Europe. On the other side, the recent sudden drop in international oil prices has also caused the market to worry about aggravating the global economic recession. The commercial building market, which is closely related to the stock market and economic performance, is definitely not optimistic.
He went on to point out that, in addition to the uncertain global economy, many Chinese-funded foreign companies have recently hoped to reduce the size of their offices, and the recent looming economic crisis will make companies more cautious. This year's office rents and selling prices pose severe pressure.
Grade A office building in commercial market