HONG KONG, Jan. 3, 2011 /PRNewswire-Asia/ -- In a number of surveys conducted by RICS member firms, Hong Kong's commercial property prices have risen to an alarming level. We have the most expensive office market in the world, and according to RICS Global Property Survey (Q3), respondents are expecting rents to rise further in 2011, while availability is now decreasing at the fastest pace since 2007.
From 1995 to 2009, the average office take up rate was about 1.8 million sq ft, and in 2011, the market can only expect a supply of just under 1 million sq ft, which is the lowest in the past 3 years. The lack of land supply is the driving force behind the high prices, which already has a negative impact on Hong Kong's competitiveness.
RICS is, although in support of the government's initiative in the redevelopment of the Central Government Offices, of the view that the additional 420,000 sq ft of commercial office space is only a short term measure in addressing Hong Kong's critically lacking of office supply, but not a long term fix to the problem. A proposal has been sent to the Chief Executive recommending the establishment of a cross-department steering committee in formulating a long-term land supply strategy to stabilize the commercial property market.
Mr. Nigel Smith, Chairman of Commercial Property Professional Group Committee of RICS Hong Kong commented,
"In summary of all the facts and data, there is simply not enough land supply for commercial property development. In the eyes of multinational corporations who wish to set up its Asia office, Hong Kong is not very attractive, and our members are also finding it difficult to help their clients find large enough floor spaces to expand their local operations."
The proposed steering committee should also invite representatives from different professional institutions, business organizations and academics in formulating a long-term approach in land development, so that there will be a stable and sustainable land supply for commercial property. This will show to the international community that the Hong Kong government has a commitment in curbing the unhealthy high property prices, and will help improve Hong Kong's competitiveness.
About RICS & RICS Asia
RICS (Royal Institution of Chartered Surveyors) is the mark of property professionalism worldwide. It covers all aspects of property, construction and associated environmental issues. RICS has 150,000 members globally and represents, regulates and promotes the work of property professionals throughout 146 countries.
The RICS Asia supports a network of over 11,000 individual professionals across the Asia Pacific region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members. The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People's Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam. For more information, please visit: www.ricsasia.org.
Media enquiry, please contact:
| RICS Asia Public Relations Representative | |
| Ms Belinda Chan / Ms Ava Lau | |
| Tel: | +852-2372-0090 |
| Fax: | +852-2372-0490 |
| Mobile: | +852-9379-3045 / +852-9829-2913 |
| Email: | belinda@creativegp.com / ava@creativegp.com |
