Property prices to rise next year

Media and tech are the big new tenants.

Hong Kong’s property prices are expected to increase moderately in 2018 due to rising borrowing costs and interest rates, according to a news release from Colliers International.

The office segment is projected to be the most popular property segment as it continues to benefit from strong GDP growth with ICT, technology, media and entertainment (TME) sectors generating the biggest demand for office space due to their fast expansion.

“Kowloon East will have a new supply of 1.8 million sq ft in 2018 and it is on its way to becoming the largest office district by 2020. On the other hand, Quarry Bay can take advantage of the Wanchai-Central Bypass to become the preferred destination for decentralisation by existing occupiers in core-CBD,” said Fiona Ngan of Colliers.

The high demand for office space is closely followed by increasing interest in development sites and industrial properties.

However, Colliers forecasts that Hong Kong’s property market will perform positively for the next year, boosted by strong investment, high demand for luxury residential units and rising levels of industrial transactions.