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Hong Kong to Face Serious Shortage of Office Space, Survey Says

Bei Hu BusinessWeek 10/07/2011 23:13
Hong Kong to Face Serious Shortage of Office Space, Survey Says - Hong Kong - Business - Real Estate - Property


Hong Kong’s new grade-A office space supply will fall short of demand unless the city suffers a sharp economic contraction, according to a Royal Institution of Chartered Surveyors study.



A total of 5.25 million square feet of office space is estimated to be built from 2011 to 2014, the institution said in an e-mailed statement yesterday. The 1.3 million square feet of additional annual supply is a “substantial decline” compared with the 1.9 million square feet added each year between 1995 and 2011, according to the study done by CB Richard Ellis Group Inc. on the institute’s behalf.

The level of supply will only meet demand should the city’s annual economic growth fall by 5 percent, it added.

“ The underlying strength of the Hong Kong economy, however, suggests that there will be a further fall in vacancy rates in the very near term,” it said. “Respondents believed multinationals will be deterred from entering or expanding in Hong Kong because of the shortage in office space.”


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