The world’s priciest empty space gets emptier

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South Africa Headlines News

Hong Kong’s aggressive virus controls, including a quarantine of up to 21 days for arrivals, reduces incentives for foreign firms to occupy more space in the city.

The world’s most expensive office market has more empty floor space than ever.

The oversupply in Hong Kong underscores an unprecedented challenge to property developers in the global financial hub, already grappling with an expat exodus and some of the world’s harshest border controls to curb the virus. Lee’s Henderson Land Development is building a glass tower shaped like a flower designed by Zaha Hadid Architects. Just across the road, Li’s CK Asset Holdings is redeveloping the stolid 1970s-era Hutchison House into a brand new skyscraper. Both of the state-of-the-art buildings are set to open next year.

Mainland Chinese companies lease about 30% of Central’s grade A office buildings, up from less than 5% in 2008, according to Savills. While the take-up speed will be slow, the two new buildings in Central may fill up after about one year, according to Patrick Wong, a real-estate analyst at Bloomberg Intelligence. Existing tenants in Central may migrate to the pair of buildings for their new facilities, putting pressure on the landlords’ competitors including Hong Kong Land Holdings and Champion Reit, he added.

 

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 /  🏆 12. in ZA

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