Investment sentiment shattered by virus outbreak

Hong Kong – 06 Apr 2020 Prominent real estate advisor Savills pointed out that only bargain-hunting investors were left in the office market looking for deeply discounted assets (30% or more), with most end users holding back from making any purchase decisions due to worsening business prospects. The gap between prospective buyer and seller has been widening with Grade A offices in fringe Central asking for HK$35,000 per sq ft receiving offers of HK$25,000 per sq ft.  The few deals being done were closer to offer prices with vendors facing difficulties in their own businesses and in need of capital.